TUI Faces Financial Losses

TUI in its latest financial statements has reported a loss in the third quarter of its financial year. The German company is a holiday company which operates over a number of sectors including aviation, cruises and hotels and resources. As we know TUI like other companies operating flights such as British Airways and easyJet have had to cut down on passenger numbers in order to reduce disruption. This has possibly meant that the has been unable to boast a better result.

TUI has had to cut down on Passenger Numbers © TUI (2018)

Still Better Than Last Year

According to the quarterly financial statements released more recently at the end of June the company has faced a group loss of 331.2 million Euros. However, this still compares better than the previous year at the same time to the 938.9 million Euro loss. This means that the company is still doing better than when compared to the previous year. In addition, it does appear that the Revenue (the total money coming into the company) is 4433.2 million Euros when compared to 649.7 million Euros for the same time period last year. This shows that Revenue has increased by over six times the 2021 figure. This means that the company has improved in terms of customers.

In addition, it appears from the segmental analysis that in terms of revenue 3895.1 million Euros came from the aviation and markets sector. This indicates that a significant amount of the money received by the company came from this sector, over 80%. However, a closer look at the figures for sector underlying earnings using its key performance indicator EBIT (earnings before income taxes, interest and result of measurement of the groups hedges) indicates that the underlying profitability is coming from other areas such as Hotels and Resorts with a EBIT of 104.9 million Euros with markets and airlines having a negative EBIT of 139.4 million Euros. This suggests that higher expenses in the airlines and markets sector is resulting in losses for the company. For the airlines component of this, the explanation given by the company is that operational challenges caused by flight disruption led to the reduced EBIT for this segment.

TUI has still performed better than last year © Valery Collins

Improving Passenger Numbers

The passenger numbers departing in the third quarter of this year on flights, according to the statements released was 5,061,000. This was an increase of 4,185,000 when compared to the third quarter in 2021 where the number of passengers departing was 876,000. This indicates that passenger numbers have improved significantly, by almost 6 times. There is also more potential for growth as the number of seats offered is still below pre pandemic levels. Currently the number of seats offered was 82% of the total number of seats offered in the third quarter of pre pandemic 2019. The percentage of seats occupied by passengers is currently 92% according to the figures released. This indicates that a significant proportion of the seats offered are being taken up. This is a slight improvement on pre pandemic 2019 when the percentage of sets taken up was 90%.

As one can see TUI is still making losses. However, since the pandemic the demand for its flights and other services have increased. It appears that the bulk of receipts is coming from its aviation and markets sector. However, the underlying performance of this sector has translated into a loss making EBIT. From an aviation perspective this has been attributed to operational difficulties indicating heightened expenses. It does appear though that this sector has a lot of potential and has an over 80% share of the revenue. This means that once expenses are controlled better, there will be more potential for this sector. We have to wait to see how this progresses.

Subscribe to our Weekly Digest!




More News

Amuthan Chandrarajan
Amuthan Chandrarajan
Aviation Reporter - Amuthan has a background in residential and commercial real estate. He also has a keen interest in aviation and travel and has visited many countries. Amuthan has a sound knowledge of business and finance.  He has gained a Master of Business Administration and has become a Chartered Management Accountant. 

LEAVE A REPLY

Please enter your comment!


>
Wordpress themeseotakipçi satın alankara implant fiyatları11yol kapanıpassport psdbatman evden eve nakliyatbalkon köşe takımılastik patlatanevden eve nakliyatkartal evden eve nakliyatfatih antika eşya alanlarfenerbahçe antika eşya alanlarnakliyatantika alanlarantika alanlarwoocommerce baselJannah themeeskişehir inşaat şirketlerieskişehir uydu tamirkitap alanlarantika alanlarantika alanlarseoEskişehir uydueşya depolamapgcdpgcdpmsaAccident LawyerDental Implantiqos tereatuzla evden eve nakliyatAntika alan yerlergaziantep evden eve nakliyateskişehir saç protezihayır lokmasıtuzla evden eve nakliyatodunpazarı emlakhayır lokmasıpendik evden eve nakliyatgölcük evden eve nakliyatgölcük evden eve nakliyatistanbul evden eve nakliyatankara evden eve nakliyatbestwhoziporselen kaplama dislerankara diş estetiğidiş teli tedavisimersin evden eve nakliyatEtimesgut evden eve nakliyattuzla asansörlü nakliyatkartal evden eve nakliyatgebze evden eve nakliyatankara evden eve nakliyatankara parca esya tasımaankara gülüş tasarımıankara gülüş tasarımıankara implant fiyatlarıniğde evden eve nakliyatEskişehir yabancı dil okuluvozol 12000puffistanbul saç ekimiankara çıkışlı günübirlik turlarEtimesgut evden eve nakliyatEtimesgut evden eve nakliyatkadıköy evden eve nakliyatmersin evden eve nakliyatçankaya evden eve nakliyatankara parca esya tasımamaltepe evden eve nakliyattuzla evden eve nakliyatankara implant fiyatlarıankara gülüş estetiğiyenimahalle evden eve nakliyaten yakın çekiciAntalya Çittereaseo çalışmasıistanbul hayır lokmasıata şehir evden eve nakliyatmaltepe evden eve nakliyatüsküdar evden eve nakliyatkepenk tamiriİstanbul evden eve nakliyatmaldives casinospoodleistanbul hayır lokmasıKartal evden eve nakliyatçankaya evden eve nakliyatataşehir evden eve nakliyatankara ofis taşımacılığıboğazda özel tekne kiralamadiş eti ağrısıtuzla nakliyateryaman evden eve nakliyateskişhir uydu servisieskişhir uydu servisitimepoodlepomeranianzibilyonbet girişraydium market idGaziantep Evden Eve Taşımacılıkdextools trendingdextools trending botdextools trending costdextools trending servicedextools trending algorithmdextools botcoinmarketcap trendingcoinmarketcap trending botpinksale trendingpinksale trending botpancakeswap botuniswap botpancakeswap sniper botuniswap sniper botfront running botfront run botmev botzibilyonbetzibilyonbet girişLibraNewsHair Transplantyks kitaplarıdextools botdextools trending algorithmpinksale trending botprediction botpancakeswap prediction botEtimesgut evden eve nakliyatankara gülüş tasarımıbatman nakliyatmersin nakliyatköpek ilanlarımersin evden eve nakliyatankara evden eve nakliyatMedyumeskişehir uydu servisimersin evden eve nakliyatetiler antika alanlarataşehir antika alanlar
deneme bonusuCasinoslot girişbig bass bonanza oynaAviator oynasugar rush oynasweet bonanzagates of olympus oynaBahisnowdiyarbet girişCasinoslotwild west gold demo oynaredbullholdenracing.comdenemebonususiteler.commarsbahisMatadorbetMatadorbetEscortSaatlik escortManisa escortGümüşhane escortfethiye escortDeneme Bonusu Veren SitelerDeneme Bonusucasibomcasibom girişŞişli escortizmir escortDenizli escortMalatya Escortşanlıurfa escortHacklinkBeşiktaş escortAtaşehir escortBeylikdüzü escortkadıköy escortcialisViagraBahis siteleriEsenyurt escortbets10masözmasözantalya escortcasibombonusbetturkeyfixbetcasibomessbahisdeneme bonusu veren sitelerdeneme bonusu 2024casibombets10bahisbetajojobet girişpusulabetbetmatik twitterbaywinGrandpashabetcasibomholiganbetbettilt girişcasibom girişslot sitelerisekabetbetmatikbetkanyonsekabetholiganbetbetmatikcasibomcasibomcasibomcasibomcasibomcasibomcasibomcasibomcasibomJetbahishitbetsahabetsahabetbettiltvdcasinoilbetcratosroyalbettümbetbaywindinamobetelexbetsekabetbetkanyonbetmatikbetinetumbetrexbetgrandpashabet girişgrandpashabet twittergrandpashabetmarsbahisholiganbetholiganbetonwinholiganbetmarsbahisslot sitelericanlı casino sitelericasino sitelerislot siteleribahis siteleribaywinİnterbahiscasibomcasibomcasibomqueenbetmostbetlunabetmadridbetartemisbetcasibommariobetgrandpashabetBetsatBetturkeybetkomcasibomEsenyurt EscortBursa EscortErzincan EscortKayseri EscortMuğla EscortAlanya EscortBahçeşehir Escortcasibomgrandpashabetcasibombetsatbets10holiganbetbaywinMaltcasinohacklink