TT. Tui Travel

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

Grafico Azioni TUI Travel (LSE:TT.)
Storico
Da Giu 2024 a Lug 2024

Grafico Azioni TUI Travel (LSE:TT.)
Storico
Da Lug 2023 a Lug 2024