Despite the heat wave in Europe, summer travel bookings are higher than last year, according to German TUI.
And the travel giant still expects profits in the current fiscal year to rise.
But during April–June, the third quarter of TUI's financial year, underlying profit, measured by EBITA, fell by 7.4 percent to 205.1 million euros (approximately 2.1 billion kronor). TUI usually makes the most money in the last quarter of the financial year.
For the full year, TUI still expects underlying profit to rise by ten percent, excluding exchange rate effects. According to CEO Fritz Joussen, it is unlikely, given the heat, that the forecast will be exceeded – a statement that caused TUI's shares to plummet on the stock exchange.
Last week, British TUI competitor Thomas Cook lowered its forecast for the full year, citing the heat as causing many holidaymakers to skip last-minute trips.
Source: TT
