TUI Group’s $4 Billion Turnaround

Tour operator TUI has boosted its 2022 first-half revenue by $4 billion.

Posting its 2022 first-half results on Wednesday, which cover the period from Oct. 1, 2021 to March 31, 2022, the company said group revenue was $4.75 billion — an increase of $4 billion compared to the same six months in the previous year.

Its second-quarter revenue of $2.22 billion was also an “improvement” on the $0.2 billion revenue posted in the same quarter in 2021.

Tui said the turnaround reflected a “normalized pre-pandemic travel environment” with March achieving the highest monthly revenue within the quarter as operations ramped up after Omicron dented travel in January and February.

Its second quarter capacity also reached 71 percent of the same quarter in 2019. In March this year, operated capacity was at 75 percent. Some 1.9 million customers departed in the second quarter — an increase of 1.7 million customers versus the prior year.

However, its second quarter underlying EBIT (Earnings Before Interest and Taxes) loss was $348.75, compared to $669.17 million in the 2021 second quarter.

Looking ahead, the UK market is its most advanced booked, with bookings up 11 percent versus Summer 2019.

And like NCL, its full fleet of cruise ships has returned, with the three brands are back in operation. However, compared to its other segments, sailings recovery is expected to be slower with short-term bookings continuing to represent a large share of overall bookings.

Its Musement division delivered 681,000 excursions, activities and tours in the second quarter, which TUI said reflected the more open travel environment and the successful integration of the company.