Unrest In Egypt, Tunisia To Cost TUI Travel Up To GBP30 Million
03 Febbraio 2011 - 8:59AM
Dow Jones News
TUI Travel PLC (TT.LN) Thursday said the repatriation of
holidaymakers and lost revenue from Egypt and Tunisia will cost
Europe's largest tour operator between GBP25 million and GBP30
million in the current quarter.
"We are closely monitoring events in Egypt and Tunisia and the
safety of our customers is our primary consideration," said Chief
Executive Peter Long.
Civil unrest in Egypt and Tunisia means TUI Travel will provide
fewer holidays to those regions. "Early indications are that
customers are choosing to rebook to alternative destinations and we
are taking action to remix our programs in line with customer
demand," Long said.
While TUI Travel's fiscal first quarter ended Dec. 31
represented an "encouraging start to 2011" and forward bookings
were good, Long said: "We remain cautious, however, given the
current economic and geopolitical uncertainty."
TUI Travel said revenue for the three months to Dec. 31 rose 6%
to GBP2.69 billion, but rose 10% on higher volumes after the impact
from acquisitions was stripped out. Foreign-exchange translation
dented revenue by 2%, while the company's exit from scheduled
flying operations in Germany and its joint venture in Canada also
reduce revenue by 2%.
Its operating loss fell GBP23 million to GBP84 million, driven
by improved trading across northern and western Europe. However,
the strengthening sterling reduced its operating loss in the first
quarter by GBP3 million because of the translations of foreign
currency losses at more favorable exchange rates.
The company said it now has completed integration of operations
as a results of the merger between First Choice Holidays PLC and
tourism operations of Germany's TUI AG (TUI1.XE) in 2007, and
delivered GBP200 million of synergies.
TUI Travel is focusing on increasing its specialist product
offering, while trying to sell more holidays via its online
platform rather than travel agents, both of which will help
generate higher profits.
Over the past three months, its shares have gained 19% in value.
They closed Wednesday at 247 pence.
-By Kaveri Niththyananthan, Dow Jones Newswires; 4420 7842 9299;
kaveri.niththyananthan@dowjones.com
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