TUI Travel cuts first-quarter loss
TUI Travel said this morning it was confident of delivering operating profit growth of between 7% and 10% this year after cutting its first quarter operating loss to the end of December by £8 million to £108 million.
Turnover was broadly flat, it said, but chief executive Peter Long described current trading as "robust" following a strong performance in the key January booking period.
He said the reduction in first quarter losses had been driven by changes in France, where the company has chopped capacity by 45%.
"We are very pleased with our current position having reduced the operating loss in the first quarter against a strong prior year performance," said Long.
"We have delivered further efficiency savings in France and an improved result in Specialist & Activity.
"Our digital transformation continues to gather pace, with a very successful online performance across Mainstream throughout the key January booking period. We also continue to see strong growth in our Accommodation Wholesaler business."
The operator said it had already sold 85% of its winter programme, with higher average selling prices in most markets, but Long declined to specify the increase. Egypt, which previously represented 10% of TUI’s winter programme, has been cut to 5% and capacity has been boosted elsewhere, includigng the Canaries and Cape Verde.
TUI said it had also achieved higher average selling prices for summer 2014, but without specifying figures, and Mainstream volumes are up by 1%. Online sales in the UK are up 12%. Across the Group, traffic to its mobile and tablet sites is up 45% and bookings are up 80%.
Sales of unique holidays now account for 74% of Mainstream Summer 2014 bookings, up two percentage points on last year.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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