Reuters reports from London.TUI, a travel company, said on Tuesday that it was seeing a positive travel recovery trend for the upcoming summer season. This is because people are making plans to go on vacation again after taking a break because of the pandemic.
Many people worried that the recession would make people less likely to take vacations, but airlines like Ryanair, Wizz Air, and easyJet (LON:EZJ) have been doing well, which shows that people are getting ready for their vacations.
TUI, one of the biggest tour companies in the world, said that they had 3.3 million guests in the first quarter, compared to 2.3 million in fiscal 2022. They also said that they have 8.7 million bookings for the winter and summer seasons of 2023.
The company made $3.8 billion in the first quarter, and its group loss before interest and taxes dropped from 274 million euros a year earlier to 158.7 million euros.
“Our plan is clear: we want to focus on quality, cost control, and market share. Future increases in revenue and earnings will come from new products, more customers, and more market share. “This will lead to above-average growth,” Sebastian Ebel, who is the CEO of TUI, said.
Consumers in Europe are dealing with the highest levels of inflation in a generation, but the demand for vacations has been strong so far. Low-cost airlines like Ryanair, Wizz Air, and easyJet have all said that they are getting a lot of bookings for the summer.
Ebel said that the tourism industry’s price increases were still less than inflation, which meant that people could still be optimistic. He also said that the earthquake in Turkey had caused a slight slowdown in bookings to that country.
Separately, TUI shareholders will vote on a capital increase plan to pay back Germany’s Economic Stabilization Fund by the end of the year. This will happen later on Tuesday.
Chief Financial Officer Mathias Kiep said, “The actual capital raise will happen at the right time in the right capital market window.”
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