Tui more than halves losses as it predicts ‘strong travel summer’

theguardian.com:

The travel company Tui Group more than halved its losses over the past six months and is predicting a “strong travel summer” as customers continue to book long-awaited holidays despite cost of living pressures.

Europe’s largest holiday company said future bookings remain “unabatedly high” as international travel bounces back from the coronavirus pandemic and have reached 85% of levels seen for the summer of 2019, with the pace picking up in particular over the past six weeks.

UK customers are leading the way in planning their getaways, with British market bookings 11% higher than they were in the summer of 2019.

Tui said almost 1.9 million passengers travelled with them over the past six months, almost 10 times as many as during the same period a year earlier.

The travel operator said holidaymakers were also spending more money while they were away, often opting for longer breaks and choosing a higher-quality hotel or room.

More customers were booking package tours, pushing Tui’s average prices higher, including a 20% increase on summer 2022 breaks.

The company reported a pre-tax loss of €130m (£111.1m) between October and the end of March. This compared with a €357m loss for the same period a year earlier, when international travel was severely restricted under coronavirus mitigation measures.

Tui Group’s chief executive, Fritz Joussen, said he expected the company to become profitable again in the current financial year after two years of crisis.

“The strong Easter business was already the first important indicator. The high demand for travel and the good business performance now confirm our forecasts. 2022 will be a good financial year with a strong travel summer,” he said.

However, the company sounded a note of caution amid