TUI is on track for double-digit takeoff in annual earnings
TRAVEL GIANT Tui has said it remains on track for a double-digit rise in annual earnings despite the long summer heatwave denting demand across the UK and Europe.
The group confirmed that the unusually hot summer and airline disruption over the peak months had made trading “more challenging”.
It also revealed a higher-thanexpected currency exchange hit of around 70m euros (£62.4m). But boss Friedrich Joussen said the group was sticking to its forecast for growth of at least 10% in underlying earnings over the year to September 30.
The heatwave played havoc with the late bookings market, impacting a raft of holiday firms and airlines, with Thomas Cook warning over profits earlier this week due to the impact of the hot weather.
Mr Joussen said yesterday: “Having continued to expand our hotel and cruise offer, occupancies and yields remain high, and the number of customers purchasing holidays from us has grown in all major markets, even with the sustained period of hot weather in Northern Europe this summer.
“This demonstrates the strength and resilience of demand for our holiday experiences, although, as previously stated, the hot weather has limited our ability to outperform.”
He added that trading for future seasons was in line with its expectations, albeit at an early stage, with around a third of its winter season programme sold an customer numbers up 2 per cent.