TUI has continued its strong trajectory of earnings and sales growth, reporting a successful third quarter for the 2024 financial year. The tourism group welcomed 5.8 million guests during the reporting period, resulting in record sales of €5.8 billion. This represents a nine percent increase compared to the same quarter in 2023, which saw sales of €5.3 billion. Additionally, TUI achieved a significant rise in adjusted Group EBIT, which increased by €62 million to €232 million. TUI Group CEO Sebastian Ebel highlighted that this marks the eighth consecutive quarter of double-digit growth in adjusted EBIT, underlining the strength and future viability of TUI’s business model despite the challenging market environment.
Ebel emphasised that TUI is growing profitably and delivering on its promises. The company, which operates a range of strong brands across the hotel and cruise sectors, serves 19 million customers through its tour operators and travel agencies. By expanding its product portfolio, TUI aims to broaden its customer base and enter new markets in Asia and America, reducing its dependency on peak holiday periods in North-West and Central Europe. The company’s global expansion differentiates it from competitors, as TUI positions itself not just as a tour operator but also as a developer, investor and operator in key destinations.
TUI is in the midst of a transformation, focused on expanding its product offerings and advancing digitalisation. A crucial step in this process has been the strengthening of its capital structure. The company recently raised €487 million through the successful placement of a convertible bond. This enabled TUI to replace 80% of a previous bond, thereby reducing its annual interest costs by €18 million and extending the bond’s term. The refinancing also allowed TUI to further reduce its undrawn KfW credit line, which contributes to the overall financial health of the company.
Overall, TUI’s performance in the third quarter of 2024 demonstrates its resilience and adaptability, setting a strong foundation for future growth as it continues to expand its global presence and enhance its service offerings across multiple markets. (€1.00 = US$1.08 at time of publication).
