TUI’s Financial Performance Results in Loss at Half Year in 2023

TUI’s financial performance continues to result in losses for the company in its half year results for the 6 months ended 31st March. As we know TUI, like many airlines, has had problems during the pandemic years when many airlines made heavy losses due to drastically reduced demand for flights. To make matters worse, during the aftermath of the pandemic, when restrictions were lifted, many airports struggled to deal with the surge demand for flights due to reduced staff numbers, as a result of layoffs when demand was less during the pandemic. TUI however was one of those airlines that was proactive in reducing the number of its own flights reducing delays at airports such as London’s Heathrow and Amsterdam’s Schiphol airports.

Tiu Airlines flying
TUI was proactive in reducing flight numbers to deal with the surge in demand at airports .© TUI AG

TUI’s Financial Performance

In terms of TUI’s financial performance, in the 6 months up to the 31st March 2023, the company made a loss of 558 million euros. This is 21.2% better than 707.9 million euros loss made at the same time in 2022. This shows that TUI’s financial performance is improving when compared to the same time period last year. However, the fact remains that the company is still making losses and even at the year-end last year the company still remained out of the profit zone. In the 12 months up to 30th September 2022, the company made a loss of 212.6 million euros. This means that the loss made now is greater than the loss made at the year end in 2022. However, it may well be that the summer months may yield more profit as demand in the aviation industry tends to be seasonal and more in the summer when many schools have long holidays.

Even for the previous year, the loss was greater for the six months up to the 31st March 2022 when compared to the 12 months up to the year end at 30th September 2022. This shows that the company was able to compensate for its earlier losses due to gains during the summer months. So hopefully the same will be true for this year and therefore TUI’s financial performance will be better later on.

Tiu plane taking off
Tiu plans to run a normal programme this summer © TUI

TUI’s Revenue

In terms of TUI’s revenue (total money received), the company earned a figure of 6.9034 billion euros in the 6 months up 31st March 2023. This is 53.5% bigger than the 4.4976 billion euro revenue earned in the same period last year. This shows that TUI’s financial performance has resulted in a greater number of receipts from customers suggesting that it is now more popular than before. This bodes well for the further development of the company as it continues to recover from the pandemic.

As one can see revenue has improved by 53.5% whereas the loss has only reduced by 21.2%. This indicates that a greater increase in money received is not fully translating into reduced losses. This indicates that the company is having issues with cost control. We already know that the company was having issues due to the war in Ukraine and the ensuing rise in fuel prices. It appears that this may still be an issue now. The company’s response was overall positive commenting that its summer performance is likely to be close to pre-pandemic 2019 levels.

As one can see, the company is giving positive noises about TUI’s financial performance. However it is clear that TUI has some way to go in order to recover as it is still making losses. Nevertheless the company is still performing better than the same time last year. We have to wait to see how this progresses.

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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.