Tui Group has seen losses widen to €83.6 million for quarter one of financial 2019, driven largely by the unusually long and hot summer in northern Europe last year.
The losses are double the €36.7 million reported last year.
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In addition, strong bookings to Turkey and north Africa caused overcapacity in other destinations such as the Canary Islands, which went hand in hand with lower margins in the tour operating business, Tui said.
“The overall trends for our sector are intact,” said Fritz Joussen, chief executive, Tui Group.
“Travel and tourism remain a growth market.
“Customers continue to travel, but they are currently resistant to increases in price.
“During this consolidation phase in our sector, it is particularly important to adequately participate in market growth.
“Tui has a good strategic and operational positioning, and the transformation of the group as a digital platform company is progressing.
“We have paved the way with our investments in hotels and ships, our IT and digital strategy and the acquisition of the Italian digital platform Musement in 2018.”
Tui also pointed to a weakness in the British pound following the Brexit referendum decision for the fall in profits.
In the three months to December 31st, Tui Group delivered turnover growth of 4.4 per cent to €3.70 billion
Customer volumes grew by 1.2 per cent versus the prior year.
Tui saw shares slump earlier this month when the company lowered expectations for the whole year.
Source: Breaking Travel News