TUI Travel PLC provided (27-Mar-2013) a pre-close trading update prior to entering its close period ahead of reports its interim results for the six months ended 31-Mar-2013. The company noted that winter programmes across its mainstream markets are almost fully sold and that "the season is ending strongly with higher average selling prices and margins across our key source markets". The company added: "We remain particularly pleased with trading in the UK and Nordic source markets, where we see double-digit revenue growth. Average selling prices and margins across all key source markets are up year-on-year. To date 46% of the overall Mainstream Summer programme has been sold. In Accommodation Wholesaler and Specialist & Activity, trading remains in line with expectations". The company has hedged the majority of its fuel and currency requirements for the seasons currently on sale, noting that this "gives us certainty of costs when planning capacity and pricing". [more - original PR]
TUI Travel pleased with trading in UK and Nordic source markets, with double-digit revenue growth
You may also be interested in the following articles...
Brexit and aviation: still no clarity, even as UK government sets timeframe and broad principles
Over seven months after the UK voted in a referendum to leave the European Union, the longer term impact on aviation remains uncertain. The UK Prime Minister Theresa May will almost certainly gain parliamentary authority to trigger Article 50 by her planned deadline of the end of Mar-2017, taking the UK out of the EU by Mar-2019.
On 17-Jan-2017 Mrs May set out 12 principles which will guide the UK in its negotiations with the European Union over the terms of its exit. These principles formed the basis of a White Paper outlining the government's planned approach to the Brexit negotiations. Among other things, the UK does not plan continued membership of the EU Single Market and wishes to control immigration.
There is now a clear timeframe for the Brexit negotiations and a broad framework to guide the UK government in these talks, but still no clarity for aviation. There are obstacles to the UK's continued membership of the European Common Aviation Area, and a bilateral approach may now be more likely. The UK Transport Secretary wants the "best possible access to European aviation markets", but is not yet able to say how that can be achieved.
China-UK air service agreement permits growth as Chinese airlines constrained in most other markets
An agreement between China and the UK to more than double their air service agreement is good timing for both sides. Chinese airlines are finding an imbalance: they are taking delivery of widebody aircraft and more Chinese airlines are flying long haul but traffic rights to major markets – the US, Canada, Germany and France – are becoming depleted. Negotiations to add traffic rights have not succeeded, typically due to the foreign side being concerned about accessing Chinese slots or Russian overflight rights.
The agreement with the UK to expand the number of weekly passenger flights from each side from 40 to 100 reflects considerable pragmatism on the part of the UK: British Airways and Virgin Atlantic are not growing in China, and China is a large growth opportunity. The UK has lagged on Chinese tourism. It was only in 2015 that China became the UK's largest inbound market.