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TUI Group Earnings Up 14 Percent Despite Brexit, Terrorism FearsAugust 11, 2016 By: Newswire
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TUI Group is reporting a 14.1 percent increase in earnings as part of its third quarter earnings report, despite recent worries over the impact of the Brexit vote and terrorist attacks on travel to Europe.
“Today, we are in a better position to cushion geopolitical challenges,” said Fritz Joussen, CEO TUI Group, in a written release. “No one is immune to external impacts. However, it has been demonstrated that we have launched the right strategy, engage in active management and control, and have developed a sophisticated risk management system.”
The company reports good performance in its UK and Ireland source market, as well as from RIU Hotels and its cruise brands. RIU posted a five percent increase in occupancy, while the company’s cruise brands, TUI Cruises, Hapag-Lloyd Cruises and Thomson Cruises, reported earnings growth of 10.1 million euros.
Turnover, however, was down 5.7 percent in the third quarter, which TUI attributed to the timing of the Easter holiday, as well as a decline in bookings to North Africa and Turkey and the impact of this summer’s terrorist attacks. The company reported that its 2016 summer source market program is 87 percent sold, with turnover up 1 percent.