Travel group Tui reports a sharp increase in sales during the third quarter compared to the same period the previous year. At the same time, the operating loss decreased.

Sales rose to EUR 4,433 million (650). Operating profit was EUR -43 million (-748). Profit after tax was EUR -331 million (-940).

”The combination of an unprecedented industry recovery following the Covid-19 pandemic and a tight labour market has left the aviation industry facing significant operational challenges and disruptions, resulting in an increase in flight delays and cancellations. This has been primarily caused by third-party suppliers and airports due to a shortage of ground handling and airport security staff,” Tui wrote in the report. As a result, costs increased by €75 million in the quarter.

”"In response, we have quickly implemented several measures to improve resilience and customer experience, including doubling our standby aircraft, proactive third-party management and increased Tui staff at key customer touchpoints. Flight disruptions in Q4 remain at elevated levels and it is still too early to estimate the impact for Q4 2022, but we expect these disruptions to normalise for future seasons," Tui continues.

Source: FinWire