TUI Travel revenue down 1%; underlying operating profit up 57%

TUI Travel reports (12-Aug-09) the following financial highlights:

• Three months ended 30-Jun-09:
  • Revenue: GBP3,575 million, -1% year-on-year;
  • Underlying operating profit: GBP102 million, +57%;
  • Underlying operating profit margin: 2.9%, -1.1 ppts;
  • Total Mainstream Passengers: 6.0 million, -14%.
• Nine months ended 30-Jun-09:
  • Revenue: GBP8,954 million, +2 year-on-year;
  • Gross profit: GBP487 million, +62.3%;
  • Operating profit: (GBP347 million), compared to a loss of GBP613 million in the previous corresponding period;
  • Loss for the period: (GBP304 million), compared to a loss of GBP522 million in the previous corresponding period.
  • Underlying operating profit margin: (2.2%), no change.

The company stated Summer 2009 continues to trade "in line with our expectations", with the company achieving required load factors and average selling prices. Winter 2009/2010 bookings, however, are behind 2008/09 levels, as expected, while Summer 2010 trading has started "positively" in the UK, with bookings in line with the prior year. The company added that load factor is 79% sold for the full season, with the load factor to the end of Sep-2009 at 85% sold, broadly in line with previous year levels. Average selling prices are now 7% ahead of the prior year.[more]

TUI Travel: ''We are pleased with these results and remain well positioned to meet the Board's expectations for the year ending 30 September 2009. Our UK Summer 2010 programme, which only launched recently, is trading well and we remain satisfied with our trading performance across all open seasons. Now, more than ever, customers are choosing to book their holidays with our high quality, trustworthy brands. We anticipate market conditions will remain challenging and expect the later booking pattern to continue in the next financial year. We will continue to maintain a high degree of flexibility in our business model to allow us to alter capacity in line with market conditions," Peter Long, CEO. Source: Company Statement, 12-Aug-09.