The TUI AG (ETR: TUI1) share price edged 3.36% higher after releasing its Q3 2023 financial results earlier today. The company generated group revenues worth €5.3bn, which was 19% higher across its business segments versus the €4.4bn generated in the previous year. Higher passenger volumes and prices fueled the growth.
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The German leisure, travel and tourism company revealed that it carried 5.5 million customers during the quarter, marking an increase of 0.4 million or 9% compared to Q3 2022. Furthermore, the customers carried were 95% of those carried in Q3 2019 on a like-for-like basis. The group’s revenues were 11% above pre-pandemic levels of €4.7bn in Q3 2023.
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TUI generated underlying pretax profits of €169.4m, marking a robust improvement of €196.5m or €122m, excluding the impact of €75m flight disruption costs compared to last year’s Q3 2022’s €-27.0m loss. Today’s results marked the first profitable Q3 since the COVID-19 pandemic struck.
The company raised €1.8bn in April 2023 and extended its syndicated credit lines worth €2.7bn. Both measures were crucial to restoring the company’s balance sheet strength and improving its credit metrics. The two were also a vote of confidence in TUI’s long-term prospects.
As a result of the capital raise and credit lines extension, S&P ratings upgraded TUI’s credit rating to B in April, while Moody’s upgraded the company’s rating to B2 in May. Both ratings had a positive outlook for the company.
TUI raised its outlook for the busy summer travel season, which is its fourth quarter, where it expects bookings to reach 12.5 million customers, marking a 6% increase compared to summer 2022. The figures represent a 4.3m increase in guests since the release of the company’s half-year financial report.
The company reported that its bookings are close to pre-pandemic levels at 95%. Average Selling Prices (ASP) continue to hold up firmly as it was up 7% against the previous season and 26% compared to Summer 2019.
TUI also highlighted that sustainability is a crucial pillar for the company and a cornerstone of its strategy for continually enhancing the value of our company.
TUI share price.
The TUI share price edged 3.36% to trade at €6.96, from Tuesday’s closing price of €6.73.
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