TUI12 Feb 2025 08:26
I must say looking at the TUI update they seem on course for another strong year. Down about 11% on the news. The early bookings are in line with the expected. The growth is 2% on a record year last year.
The write up says airlines are struggling. That's nonsense. Wizz and ryanair have a very specific issues. This has created opportunities at easyjet TUI and others.
"TUI shares sank more than 9% after it was revealed Tuesday that bookings growth weakened. Europe's largest travel operator warned bookings were only up 2% for the upcoming summer, with one third of packages sold. Group CEO Sebastian Ebel said growth slowed as TUI eased off on expanding capacity and on pricing. Demand was also moving to new destinations and away from previously strong markets, like Turkey. He added there was a slight dip in bookings after Christmas, but said the trend is due to recover. The share fall comes despite TUI reporting a jump in first-quarter profit. The German group said earnings before tax reached $52.55 million, way up from around $6 million a year before. It also kept its profit outlook for the coming year. European airlines struggled last year, but travel companies like TUI did well from a resurgence in packaged holidays. Vacationers have turned to all-inclusive package holidays due to soaring hotel and flight prices"