Terrorism takes its toll on tourist revenue at TUI
Falling reservations for North Africa and Turkey, the effects of terrorist attacks like the Brussels airport bombings in March, and Easter falling outside the second quarter this year were to blame for the slide
BERLIN - A series of terrorist attacks undermined revenues at German-British travel giant TUI between April and June, the company said in results released on Thursday.
Revenue in the third quarter of the group's financial year was down 5.7 percent compared with the same period in 2015, at 4.6 billion euros ($5.1 billion).
Falling reservations for North Africa and Turkey, the effects of terrorist attacks like the Brussels airport bombings in March, and Easter falling outside the second quarter this year were to blame for the slide, the group said in a statement.
Although bookings suffered, the group was able to increase operating profits as measured by EBITA by 24 percent, to 150 million euros.
TUI said it would be able to meet its forecast of growing operating profit for the year as a whole by "at least 10 percent" compared with the 2014-15 financial year.
"We're better able to absorb geopolitical challenges these days," said chief executive Fritz Joussen, although "no-one is immune from external influences".
The breadth of TUI's activity -- across more than 100 different countries -- means that it is often able to redirect customers rather than losing them altogether if they lose their appetite for a particular destination.
TUI is betting on growing income from hotels and cruises to make up some of the ground lost to fears of terrorism.
"TUI currently notes robust bookings and new reservations are meeting our expectations," the firm said in its statement.