(Sharecast News) - Travel agency company TUI has registered a positive quarterly underlying profit for the first time after a record performance in the first quarter, as it reiterated its guidance for the full year.
The company booked underlying earnings before interest and tax of €6m for the three months to 31 December, moving into the black for the first time since the merger of TUI AG and TUI Travel PLC in 2014. For the first quarter a year before, the group registered an underlying EBIT loss of €153m.
Group revenues were up 15% year-on-year at €4.3bn, driven by higher demand at improved rates and prices, the company said.
Customer numbers totalled 3.5m during the quarter, up 6% on the prior year, with the average load factor one percentage point higher at 86%.
Net debt dropped to €4.0bn from €5.3bn a year earlier, helped by proceeds from the capital increase in April 2023 as well as positive cash flow from operations and lower net investments.
Looking ahead, TUI said that bookings for the summer look "promising" with 32% of the programme already sold - in line with last year.
As a result, the company said it still expects full-year revenues for the 12 months to 31 October to rise by 10%, with underlying EBIT increasing by "at least" 25%.
"Our guidance for FY 2024 is provided within the framework of the current macroeconomic as well as geopolitical uncertainties especially in the Middle East. It is based on the strong performance in Q1 and the current positive booking momentum across both seasons, as well as a return to a normal hedging policy," TUI said.