The Resurgence of TUI: Strong Summer Results and Optimistic Outlook

Infotrading.io - In a landscape beset with economic unpredictability and a plethora of mixed earnings, TUI (LON:TUIT) AG has emerged as a significant outlier. The holiday operator recently backed its guidance following a summer season that witnessed bookings soaring close to pre-Covid levels.

Quarter and Full-Year Prospects

TUI has revealed optimistic predictions for both its fourth-quarter and full-year underlying Ebit, poised for a substantial increase against the preceding year. Hotels & Resorts are slated to perform close to last year's strong numbers. In a similar vein, both the cruises and markets & airlines segments are forecasted to showcase a robust increase in results. But what's piquing analysts' interest is TUI Musement, which is expected to deliver exponentially better performance.

Pipeline and Bookings

Further bolstering this optimistic sentiment is the company's pipeline of approximately 13.7 million bookings for the Summer 2023 season. This figure represents a 5% uptick against the prior season and is remarkably close to pre-pandemic levels, standing at 96%.

Continued Positive Momentum

The company reported receiving 1.1 million additional bookings since its Q3 update, surpassing its performance in the Summer of 2022. The demand in the final month of the season was notably strong, with Greece and Turkey emerging as favored destinations.

Winter 2023/24 Projections

This positive momentum doesn't seem to wane as the company moves into the Winter 2023/24 season. With an expanded programme, TUI reported that overall bookings are up by 15% against the previous year, supported by a 4% price increase.

Future Ambitions

Looking beyond the immediate future, TUI has ambitious plans for its mid-term 2025/26, aiming to build on its €1.2 billion underlying Ebit significantly.