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TUI Shares Spiked 3.72% Higher, Then Fell on Upbeat Q4 Results

Simon Mugo trader
Updated 20 Sep 2022

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Key points:

  • TUI shares spiked 3.72% higher on upbeat Q4 results but later fell.
  • The travel and tourism company reported impressive figures for Q4.
  • As a result, the company’s shares look attractive at current prices.

The TUI AG (LON: TUI) share price spiked 3.72% higher after the German leisure, tourism and travel group updated its Q4 operations as its current financial year ends on 30 September 2022.

Investors cheered the company’s positive results, but the sellers later overpowered the buyers and pushed TUI’s share price lower. The firm was trading down 2.41% despite revealing that its summer bookings were at 91% of the Summer 2019 bookings before the coronavirus pandemic struck.

Also read: The Best Travel Stocks To Buy Right Now.

TUI also reported that its average selling prices (ASP) were higher than in previous periods, compensating for rising operating costs due to record-high inflation and high fuel prices. Investors were also happy to hear that the company’s winter 2022/2023 bookings were at 78% of Winter 2018/2019 bookings despite being at an early stage.

The winter ASP was 26% higher compared to Winter 2018/2019 figures, with the UK leading in the number of bookings at 36%. UK ASP was up 22%, with Q1 2023 booking being 54% sold compared to the 60% figure achieved in a typical year before the pandemic.

TUI also noted that its Hotels & Resorts business was also doing well, with July and August occupancies of its rooms in line with pre-pandemic trends. The company also sold its rooms at higher prices compared to the pre-pandemic period.

The company reiterated its guidance for the current financial year. It expects to generate significant positive underlying pre-tax earnings due to the topline growth and the benefits from its global realignment programme.

However, the positive update was not enough to help TUI shares hold on to their earlier gains. A flood of sell orders quickly reversed the shares’ positive trends and pushed them lower. TUI shares have formed a bottoming pattern and could rally higher in future.

*This is not investment advice.

TUI share price.

TUI share price 20-09-2022
Source: Tradingview

The TUI share price spiked 3.72% higher to trade at 142.75p, rising from Friday’s closing price of 137.63p, but was trading in negative territory at writing.

Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading