TUI is warning that the political unrest in Tunisia and Egypt could cost it up to £30 million
Unveiling its first quarter results, it said it was monitoring the situation closely.
“Early indications are that customers are choosing to rebook to alternative destinations and we are taking action to remix our programmes in line with customer demand,” said chief executive Peter Long.
Commenting on the market overall, he said: The progress in the first quarter represents an encouraging start to 2011 and the forward booking position is good. We remain cautious, however, given the current economic and geopolitical uncertainty”.
Total revenue was up 6% to £2,694m and underlying operating loss improved by £23m to £84m.
“The improvement in the first quarter result was primarily driven by continued delivery of our turnaround plan and final merger synergy benefits, as well as a better trading performance,” added Long.
TUI said in the UK, better trading was offset by the severe weather disruption in December, two cruise ships being in extended dry dock for maintenance and higher flying costs due to flying more B757s in the UK fleet for this winter.
By Bev Fearis
