TUI Travel says performance in line with expectations

On Thursday, TUI Travel indicated that with selling prices higher on average, the company will perform in line with expectations for its current financial year.

Even with the difficult trading environment since 27 November and bookings expected to be flat, the largest European travel operator commented: “we are achieving our load factor and margin targets due to our ongoing management of capacity, and we expect this to continue through the summer season.”

Average selling prices in the UK on charter holidays for this winter were up by 10 per cent as compared with the same period last year, but customer numbers dropped by 12 per cent. Margins were much the same as last year.

The pound, weaker against the euro and the US dollar, led to increased demand for destinations such as the Dominican Republic, Egypt and Mexico.

With the UK excluded, TUI Travel is expecting weakened demand for this summer and has reduced capacity accordingly. This has translated into average selling prices that are “significantly ahead of last year.”

All-inclusive winter holidays saw significantly increased demand over last year. Total load factors for the winter season, however, were two points lower than they were for the previous year, at 31 per cent. Capacity has been reduced so far by 17 per cent.

Since the beginning of this year, shares in TUI Travel have dropped by 3.9 per cent, and closed on Wednesday at 225p.

Thanks to www.easybourse.com for the above quotes, for more information on this article please visit their website.

www.tuitravelplc.com