Translation:
The tourism group Tui was able to record a profit at the consolidated level for the first time since the beginning of the crisis caused by the pandemic in the shifted fiscal year 2023, which ended in September. The revenue increased from 16.5 billion to 20.7 billion euros, in line with analysts' estimates. A significant factor for the positive business development is the high travel prices, which will continue to rise.
The current average price for winter vacations at Tui is five percent higher than last year, with price increases of four percent forecasted for the upcoming summer. Tui also has ambitious goals for the current fiscal year 2024, with a planned increase in adjusted earnings of 25 percent.
The strong recovery of the corporation is surprising, as the cruise industry was considered one of the first and hardest hit sectors at the beginning of the pandemic. The ships often had to endure days of quarantine, which made the travel experience a disaster. These events have not only left a mark on the tourism industry but also in the minds of consumers. However, Tui's own airlines were also able to benefit from the turnaround. The Markets and Airlines division was able to turn last year's loss of around 59 million euros into a positive result of 240 million euros.
Despite positive booking figures and customer willingness to spend more on their travels, the Tui stock remained significantly below its six-month high of 7.3 euros at 5.8 euros before the announcement of the latest figures. Many analysts see only market-conforming growth and no disproportionate development for the company. For this reason, the Tui management is currently considering a possible delisting from the London Stock Exchange and a concentration on Frankfurt - possibly in the MDax. This would optimize liquidity and simplify the shareholder structure.
Restrictions during the pandemic plunged Tui into a deep crisis, but the company was able to be saved thanks to state aid amounting to four billion euros. Meanwhile, these relief measures have been fully repaid. This was achieved through comprehensive capital measures, such as a merger and subsequent increase in stocks.
The group's balance sheet has improved, with a reduction in net debt to 2.1 billion euros and an increase in equity to 1.95 billion euros. Despite these measures, the group's holding company, Tui AG, continued to report a loss of nearly 518 million euros, with this result also including the figures of other investments.
Overall, Tui's development in the past fiscal year demonstrates a promising turnaround and the prospect of continued positive business growth. However, it remains to be seen how the travel industry will evolve in times of constantly changing pandemic situation, and how Tui can compete with other companies in the industry.
