TIDMTT.
RNS Number : 6995O
TUI Travel PLC
22 September 2011
22 September 2011
TUI Travel PLC
("TUI Travel")
TRADING UPDATE
Highlights
-- On track to meet our full year expectations.
-- Summer 2011 has traded well since our last update, with bookings
up in most source markets. Overall, lates margins are in line with
our expectations.
-- Winter 2011/12 trading to date is satisfactory overall.
Differentiated product has performed well, particularly in the UK
and Nordics.
-- Cash flow continues to benefit from a strong working capital
performance, year-end net debt expected to improve versus prior
year.
Peter Long, Chief Executive of TUI Travel PLC, commented
"We are pleased with our performance in the lates market for
Summer 2011, and most of our programmes are now almost fully sold.
We remain confident that the full year results will be in line with
our expectations.
"Trading for Winter 2011/12 is satisfactory overall, but we are
anticipating a slow recovery in trading to Egypt and Tunisia, and
have managed our capacity accordingly. Our focus remains on
differentiated product, maintaining margins, prudent capacity
management, and delivering our turnaround and cost savings
programme. The flexibility of our business model means that we are
well placed to achieve this."
Current Trading
Summer 2011
The Summer 2011 programme, which runs until the end of October
in our largest source markets, is now almost fully sold, with load
factors in line with prior year. The season is trading in line with
our expectations and we are pleased with the development in margins
in all source markets since our last update, in particular in the
UK and Germany.
Current Trading(1) Summer 2011
Total Total
YoY variation% Total ASP(2) Sales(2) Customers(2)
MAINSTREAM
UK +5 +3 -1
Nordic region -1 +11 +12
Northern Region +4 +4 +1
Germany +2 +9 +6
Austria +3 +1 -1
Switzerland -10 -21 -12
Poland +1 +48 +47
Central Europe +2 +8 +6
France tour operators +2 +1 Flat
Belgium -2 +4 +6
Netherlands +4 +17 +12
Western Europe +1 +7 +6
SPECIALIST & ACTIVITY N/A Flat N/A
A&D(4) +2 +20 +18
(1) These statistics are up to 11 September 2011 and are shown
on a constant currency basis (2) These statistics relate to all
customers whether risk or non-risk (3) These statistics include all
risk capacity programmes
(4) These statistics refer to online accommodation businesses
only; Sales refer to total transaction value (TTV) and customers
refers to roomnights
YoY customer Cumulative Bookings since Cumulative
booking variation bookings at 31 previous trading bookings at 11
% July statement Sep
UK -1 -7 -1
Nordic region +11 +21 +12
Germany +7 +4 +6
France tour
operators -3 +16 Flat
Belgium +6 +4 +6
Netherlands +13 +5 +12
------------------- ------------------ ----------------- ------------------
Winter 2011/12
For Winter 2011/12 it is relatively early in the booking cycle
for most source markets, however we continue to be satisfied with
trading and booked load factors are in line with our
expectations.
Current
Trading (1) Winter 2011/12
y-o-y Total Total Total
variation% ASP(2) Sales(2) Customers(2) Risk Only
Left to
Capacity(3) sell(3)
MAINSTREAM
UK +6 -7 -11 -7 -6
Nordic
region +2 +2 +1 +7 +13
Northern
Region +4 -3 -7
Germany +3 Flat -3 -2 +1
Austria +4 +5 Flat
Switzerland -17 -25 -10
Central
Europe +2 -1 -2
France tour
operators +1 -6 -7
Belgium +2 +4 +2
Netherlands +8 +41 +31
Western
Europe +4 +8 +4
SPECIALIST & N/A +13 N/A
ACTIVITY
(1) These statistics are up to 11 September 2011 and are shown
on a constant currency basis (2) These statistics relate to all
customers whether risk or non-risk (3) These statistics include all
risk capacity programmes
In the UK, as previously announced, we have reduced capacity as
a result of a change in aircraft fleet mix, including moving
aircraft within the Group to serve much higher demand in the
Canadian and Nordic markets. This has resulted in a 7% capacity
reduction most of which has come out of Egypt and Tunisia. As a
result of these capacity management measures UK load factor is
broadly in line with prior year. Average selling price is up 6%,
partly reflecting higher fuel and accommodation costs.
Differentiated product sales are progressing well, with bookings up
7% versus prior year, and our percentage of sales made via online
channels has also increased by three percentage points, to 37%.
In Canada, trading has been very strong, with bookings up
significantly versus prior year. In the Nordic region capacity is
currently up 7% as we continue to expand our presence in
destinations where we were previously under-represented.
Bookings in Germany are down 3% and average selling price is up
3%, leaving revenues flat overall. This is driven by lower demand
for North African destinations, where capacity has been
reduced.
In France, where approximately 60% of their passengers
historically travel to Egypt, Tunisia and Morocco, trading
continues to be significantly affected by the unrest in these
countries earlier in the year. As a result, bookings are 7% lower
than prior year.
The Netherlands and Belgium are trading well, with the former
planning capacity increases to reflect significantly higher
demand.
Summer 2012
The UK has gone on sale for Summer 2012. It is very early in the
booking cycle, with 10% of holidays sold to date, which is broadly
in line with prior year. Bookings are currently down 11%, partly
reflecting a reduction in capacity, which we expect to be down 4%.
Average selling prices are up 10% - this reflects fuel and
accommodation cost inflation, as well as an increase in the
proportion of differentiated products sold.
Margin performance is a key driver for the Group. We anticipate
that in the UK, cost inflation will be just over 5% for Summer 2012
and our prices are designed to recover these input costs in this
competitive market.
Cash Flow / Net Debt Performance
A good cash flow performance is anticipated in the full year,
resulting in an anticipated reduction in net debt. As mentioned in
our previous update, this is due principally to working capital
management measures.
Preliminary Results
TUI Travel will announce its preliminary results for the year
ended 30 September 2011 on 5 December 2011.
Enquiries:
Analysts & Investors
Will Waggott, Chief Financial Officer Tel: +44 (0)1582 645 334
Andy Long, Head of Strategy & Investor Relations Tel: +44 (0)1293 645 795
Press
Lesley Allan, Corporate Communications Director Tel: +44 (0)1293 645 774
Sarah Macleod, Corporate Communications Manager Tel: +44 (0)1293 645 776
Michael Sandler / Kate Hough (Hudson Sandler) Tel: +44 (0)20 7796 4133
This information is provided by RNS
The company news service from the London Stock Exchange
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