Climb at Tui: Share price reaches highest level since August thanks to positive quarterly balance

Investors are increasingly pleased with the latest business figures from TUI AG, which saw a considerable increase in its shares on Tuesday. The travel company's stock climbed 4.5 percent to 7.14 euros, marking the highest share price since last summer. This optimism is based on convincing quarterly results and promising signs in booking dynamics. Decisive factors in this share price rally, according to market participants, include robust results in the first quarter. Analyst Jaina Mistry from Jefferies points out that TUI managed to generate profits during this period, significantly surpassing forecasts. In addition, the expert indicates a strong booking trend for the upcoming 2023/24 winter season and for summer 2024 as positive signals. The reduction in net debt compared to the previous year should not be overlooked either. Furthermore, analyst Cristian Nedelcu from UBS emphasizes the financial strength of the travel conglomerate. Contrary to expectations, which assumed a loss of 64 million euros in adjusted EBIT, TUI reported surprising profits of 6 million euros. Additionally, it is observed that bookings for the upcoming summer season have increased by eight percent compared to the previous year, this in parallel with an increase in average prices. The recent developments at TUI indicate that clearer horizons for investors are now coming into view in the travel industry after turbulent times.