Money: TUI losses widen to £261m as Brexit weighs on demand - PressFrom - United Kingdom
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MoneyTUI losses widen to £261m as Brexit weighs on demand

17:25  15 may  2019
17:25  15 may  2019 Source:   news.sky.com

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Tui reported a net loss of €139.1million for the three months ending in December. ' Brexit can lead to a new form of international cooperation and cross-border commerce built on a better balance of Tui Group saw net losses widen to €139.1million for the three months to the end of December, from €

Carmakers across Europe have suffered from a fall in demand for diesel vehicles due to pollution concerns. Britain’s economy slowed after the June 2016 Brexit vote, its growth rate slipping from top spot Separate figures showed Britain’s goods trade deficit widened unexpectedly in November to £

TUI losses widen to £261m as Brexit weighs on demand © Getty TUI has issued two profit warnings this year

Travel operator TUI has reported widening half-year losses and a fall in summer bookings as it counts the cost of weak consumer confidence and Brexit uncertainty.

The group reported an underlying loss of €301m (£261m) for the six months to the end of March, up from €170m (£148m) in the same period a year ago.

It has also been knocked by the grounding of Boeing's 737 MAX aircraft, which it has previously warned could cost up to €300m (£261m) as it leases more aircraft to cover its routes.

TUI said the decline in its first-half performance was partly due to the knock-on impact of last summer's heatwave holding back bookings and because it had too much capacity in Spain as holidaymakers opted for cheaper destinations such as Turkey.

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UK holiday group Thomas Cook said it plans a “strategic review” of its airline as it struggles to contend with Brexit uncertainty and high-street weakness in its Group revenue ticked up 1 per cent to £ 1.7bn for the quarter, led by strong demand for Turkey and north African destinations and offsetting weaker

TUI AG ( TUI 1.XE) said Tuesday that net loss for the first quarter of fiscal 2019 widened as the company was hit by an unusually long and hot A long, hot summer in Northern Europe, overcapacity in western Mediterranean destinations and a weaker pound as a result of Brexit uncertainty weighed

For this summer, bookings in its package holiday and airlines business are down 3% while selling prices are up by only 1% amid a competitive market - not enough for TUI to cover rising costs.

TUI said that for this part of its business "weak demand environment persists", putting pressure on profit margins.

"This is driven by a number of factors - reduced demand due to last year's extraordinary hot summer, slowdown of consumer confidence, Brexit uncertainty, shift in demand to the eastern Mediterranean coupled with overcapacity to Spain, as well as the 737 MAX grounding," TUI said.

TUI losses widen to £261m as Brexit weighs on demand © Getty The travel operator was hit by overcapacity in Spain

However, the group said its hotels and cruise ships business, where it has been investing in expansion over recent years, continued to perform well.

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Tui sees losses widen as its tour and airline divisions suffer at the hands of a weaker pound and hot summer. Tui said it has seen less demand for Nordic countries and the Canary Islands. Most losses came from its tour operator business and airlines, but this was partly offset by profits in its

TUI Travel reported on Thursday an increase in annual losses as Europe's biggest tourism operator was hit by tough trading conditions in Britain and the impact of the volcanic TUI Travel said that travel chaos caused by the Iceland volcanic ash cloud earlier this year had cost the group 104 million pounds.

The results come after two profit warnings from TUI earlier this year - one blamed on the weak UK market and the other on the Boeing issue.

TUI's fleet of 150 aircraft includes 15 currently grounded 737 MAX aeroplanes, with a further eight scheduled for delivery after the lifting of the grounding.

It has warned investors that it faces a €200m (£174m) hit from the grounding of the aircraft, assuming flights resume by mid-July.

If it does not become clear by later this month that flying will re-start by that time, it will have to extend measures to cover for this until the end of the summer season, adding a further impact of up to €100m (£87m).

TUI chief executive Fritz Joussen said the company was "on track, both strategically and operationally" and that medium and long term growth forecasts were intact. Shares rose 3%.

The company is not the first travel firm to warn of a Brexit impact on demand, with easyJet saying last month that the uncertainty was having an impact.

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[$$] TUI Losses Widen . TUI posted a widened underlying loss before earnings before interest, taxes and amortization at constant currency--its A long, hot summer in Northern Europe, overcapacity in western Mediterranean destinations and a weaker pound as a result of Brexit uncertainty weighed

Struggling estate agency Countrywide has warned that Brexit will knock its performance over the coming months as the firm posted widening full-year The group – which is behind the Bairstow Eves and Hamptons brands – reported a bottom line loss of £ 218.2 million in 2018 compared to £ 207.3

Meanwhile, TUI's rival Thomas Cook has been seeking new debt funding from lenders and has been looking to sell its airline business.

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