Prior to entering its close period ahead of reporting its full year results for the twelve months ending 30 September 2024 on 11 December, TUI Group announces the following trading update:
TUI set to deliver a strong FY24 in line with expectations
- Positive booking momentum and a strong close to Summer 2024 leave us well positioned to reaffirm our FY24 guidance1 to increase Und. EBIT by at least 25% year-on-year
- Markets + Airline remains well ahead with bookings2 up +6% and ASP +3% for Summer 2024
- Promising start to Winter 2024/25 as consumers continue to prioritise spend for leisure experiences
- Bookings in Markets + Airline2 up +7% with ASP +5%, ahead across all our source markets, bolstered by stronger demand for dynamically packaged product
TUI Group FY24 Guidance & Mid-Term Ambitions
- FY24 Guidance1 – we continue to trade in line with management expectations and therefore reaffirm our guidance to increase underlying EBIT by at least 25% year-on-year (FY23: €977m)
- Mid-term ambitions – we have a clear strategy to accelerate profitable growth by increasing the customer lifetime value, creating a business which is more agile, more cost-efficient and achieving a higher speed to market with the aim to create additional shareholder value. We remain committed to delivering our mid-term ambitions which are as follows:
- Target net leverage3 strongly below 1.0x
1 Based on constant currency and within the framework of the macroeconomic and geopolitical uncertainties currently known, including developments in the Middle East
2 Bookings up to 15 September 2024 relate to all customers whether risk or non-risk and include amendments and voucher re-bookings
3 Net leverage ratio defined as net debt (Financial liabilities plus lease liabilities less cash & cash equivalents less other current financial assets) divided by underlying EBITDA