(Reuters) -Holiday group TUI posted a third-quarter operating loss on Wednesday due to additional costs related to the air traffic disruptions across Europe, but said summer bookings were close to pre-pandemic levels.
Excluding additional costs of 75 million euros ($76.58 million) for disruptions in air traffic, adjusted operating profit stood at 48 million euros for the three months ended June 30, its first positive result since the COVID-19 crisis started.
TUI, which runs tour operators, travel agencies, airlines, hotels and cruise liners in holiday destinations across the world, is bouncing back on demand for so-called ‘revenge travel’ after the pandemic wrecked havoc on the tourism sector.
The German company said in May it expected to return to profitability this year, as people were valuing experiences more than goods and were eager to pay for more expensive stays on their vacations.
TUI, one of the world’s largest tourism groups, reported a smaller underlying operating loss of 27 million euros for the quarter, compared with a loss of about 670 million euros a year earlier.
Group-wide bookings for the period were at 90% of the level of summer 2019. For July and August, bookings rose to 93% of pre-pandemic levels, TUI said.
The company said it still expects this summer to almost reach the bookings of 2019, while average prices are significantly higher than three years earlier.
($1 = 0.9793 euros)
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Rashmi Aich)
