TUI Travel reports £367m first-half loses as Thomas Cook seals financing deal
TUI Travel, the tour operator behind the Thomson and First Choice brands, has reported £367m pre-tax losses for the first six months of the year, while rival Thomas Cook's £1.4bn financing deal has been approved by its banks.
TUI: latest campaign promoting Thomson Airways' new Boeing Dreamliner aircraft
TUI Travel reported pre-tax losses of £367m for the six months to 31 March, showing little change from its reported £364m pre-tax losses for the same period last year.
But TUI said a strong performance was delivered by the UK, with a £48m improvement in first-half underlying operating loss.
TUI, like its rivals, has been hit by a drop in holidays to North Africa, where recent unrest has affected demand.
The company's revenues increased by 5% – the same rate as last year – and climbed to £5.4bn. The group pinpointed the UK as having shown a "strong" performance.
The operator said its UK results were helped by increased sales of "differentiated and exclusive content", which includes the repositioning of both the Thomson and First Choice brands last year.
The group said 47% of its winter holidays were now booked online.
Peter Long, chief executive of TUI Travel, said: "We are pleased with overall performance for the first half. The UK delivered a strong winter performance, which attests to our focus on differentiated and exclusive product, and being online driven – key elements of our modern mainstream strategy."
TUI Travel's steady financial performance comes as rival operator Thomas Cook, which has suffered severe financial turbulence over the past year, confirmed its new financing package with its banks for £1.4bn.
The troubled group revealed it was in further discussions with its banks to secure a £1.2bn deal in April, to extend its current financing agreement by two years and allow it to continue operating in the travel market.
Thomas Cook's group chief executive Sam Weihangen said on Saturday (5 May) that the deal showed an "ongoing support" from the its lenders.
He said: "We continue to make good progress in strengthening the group's financial position, and our disposal plans, including an aircraft sale and leaseback, are proceeding well.
"These actions are an important step in the journey to strengthen confidence and ensure that the Thomas Cook Group will continue to provide customers with wonderful travel experiences for years to come."
Follow Loulla-Mae Eleftheriou-Smith on Twitter @LoullaMae_ES
This article was first published on marketingmagazine.co.uk
Latest jobs Jobs web feed
- Account Director- Exciting Online Content Marketing Company- Up to £70,000 plus OTE Cedar Scott Up to £70,000 basic (up to £90,000 OTE) plus share options, Central London
- Category Manager Pearson Competitive salary & performance related bonus & benefits, Central London
- Global Product Manager Evans Taylor c£50k - c£60k p.a. plus car, bonus and benefits, North East of England or Central London
- Retail Marketing Manager - Maternity Cover Tottenham Hotspur Football Club Up to £35,000 pro-rata, Tottenham and Enfield
- Brand Manager Radisson Blu Edwardian, London Competitive , South Kensington, London
- ACCOUNT DIRECTOR/SENIOR ACCOUNT DIRECTOR - BTL/SP/Brand Experience - London - £45 - £55k plus bonus Judi Patton £45K-55K plus bonus, London/Greater London
Integrated digital marketing offers huge opportunities to engage, servic...
Mobile marketing is coming of age, and the pace of change is now exponen...
With UK consumers spending an average of £1,083 a year online, int...
Conversational Mobile Marketing: Engage Customers and Empower Advocates (Expert Reports) External website
The pressure is on for marketers and mobile operators to embrace a strat...
As a nation, the UK is media and technology obsessed with over half of t...
All customers have the potential to become your brand advocates, driving...