TUI (LON: TUI) shares fell in early Wednesday trading after the company posted its final results for the year ended September 30, 2022.
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The world’s largest holiday company showed signs of a recovery as its revenue jumped to €16.54 billion, with €504.6 million from holiday experiences and €480.6m from hotels and resorts. The company’s revenue jumped from €4.73 billion last year, representing a recovery from the pandemic as travellers returned in significant numbers as travel restrictions eased.
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TUI, which operates hotels, holidays, an airline, and cruise ships, said, “basically we didn’t really kick off operationally until the summer,” with the company reporting that summer customers increased to 13.7 million, reaching 93% of pre-pandemic levels.
TUI’s underlying EBIT recovered to €408.7 million in its fiscal 2022, up from a €2.08bn loss the previous year. However, the company posted an overall loss of €212.6 million.
The current global geopolitical and economic environment remains challenging for the industry, in particular the impact this has on cost inflation, TUI said. They added that the “economic outlook remains uncertain.”
Looking ahead, the company said that with Summer 2022 being very encouraging with average earnings significantly higher, it can “see the same trend for Winter.”
However, TUI’s shares are down over 4% at the time of writing, with the decline attributed to an announcement ahead of the results in which TUI said it has agreed to repay at least €730m of German Covid support used to help bail out the company during the pandemic.
The deal will see TUI (LON: TUI) will fully repay the silent participation provided by the German government’s Economic Stabilisation Fund as well as a remaining warrant bond until the end of 2023.
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