Tui Group profits lowered by Tunisia attack

Tui Group profits lowered by Tunisia attack

This bill is expected to rise by another €25m ($28m) in the last quarter.



Before the attacks Tui sent half a million tourists a year to Tunisia, with the North African country accounting for 3% of total bookings.

Thirty three of the thirty eight people killed in the Sousse massacre were Tui customers.

Overall, underlying earnings for the period increased by 18% to €194m (£138m), as robust trading in the UK helped to offset the financial effect of the tragedy.

TUI said it has sold 86% of its programme for summer 2015, in line with the prior year, with bookings and average selling prices up 2%.

We were 100% focused on making sure that our customers were looked after and that was our number one priority. (Photo credit Jaume Olle). Holidaymakers in northern Europe were deterred from booking trips to Greece in late June and early July due to concerns over Greece’s potential exit from the euro. The foreign offices of the UK, Belgium and Netherlands are now advising against unnecessary travel to Tunisia. “Ultimately, we will not make a decision regarding the recommencement of our programmes until the Foreign Office advice is lifted and it is safe to travel again”. Numerous injured were also travelling with the tour operator. During the 9-month period we took delivery of five B787-8s. “That special long-haul holiday is becoming much more important to [our customers], and that’s why we’re seeing the growth in demand”.

Fritz Joussen and Peter Long, joint chief executives of the TUI Group, said: “The third quarter was marked by the tragic event in Tunisia”.

Mr Long said: “Our thoughts remain with the families whose lives have been devastated as a result of this horrific attack”.

Thompson and First Choice owner TUI today reported results for the quarter to the end of June.

“We are very proud of the commitment and dedication our colleagues have shown throughout this unprecedented situation”.

“Uncertainty remains over other favourite Greece, with performance hindered end-June and early July by painful bailout negotiations, a referendum and imposition of painful capital controls, however, investors cheered by news that recent weeks have seen a welcome improvement in bookings”.

Tunisia

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