(Alliance News) - Tui AG on Tuesday said its loss in the first financial quarter that ended December 31 narrowed amid a climb in revenue on the back of higher travel demand, helped by eased Covid restrictions.
The Hanover, Germany-based travel company reported a pretax loss of EUR272.6 million, narrowed by 33% from EUR404.5 million a year ago. Revenue jumped 58% to EUR3.75 billion from EUR2.37 billion, outpacing a 48% increase in cost of sales to EUR3.66 billion from EUR2.47 billion.
Tui said the improvement reflected "strength of demand and a return to a restriction free travel environment achieving levels above pre-pandemic levels."
Tui declared no dividend, unchanged from a year prior.
Compared to the pre-pandemic first quarter of financial 2020, pretax loss more than doubled from EUR130.3 million, and revenue was 2.6% lower than EUR3.85 billion three years ago.
Tui reiterated its expectations for financial year 2023, which ends September 30, that underlying earnings before interest and tax will increase "significantly", helped by "an encouraging booking momentum."
It added that the start into the new year has demonstrated "record" booking days online in the UK and Germany. "Volumes overall in the last four weeks are now above pre-pandemic levels at +5% for
Winter 2022/23 and +10% for Summer 2023, with higher prices, underlining the popularity of our product offering and a testament to the importance of travel for our customers."
By Tom Budszus, Alliance News reporter
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TUI AG (TUI)