TUI continues its strong earnings and revenue growth and reported a successful third quarter of financial year 2024: With 5.8 million guests in the reporting period, the tourism group achieved a record revenue of 5.8 billion euros. It was up 9 per cent on the previous year (Q3 2023: 5.3 billion euros). Underlying Group EBIT rose significantly by 62 million euros to 232 million euros in the third quarter. TUI Group CEO Sebastian Ebel: "For the eighth consecutive time, we are reporting double-digit growth in underlying EBIT. In a market environment that remains challenging, this also demonstrates the strength and future viability of our business model. We are growing profitably and are delivering what we have announced. We are a tourism group with strong companies and brands in hotels and cruises. Our tour operators with their own travel agencies provide access to 19 million customers. By expanding our product portfolio, we are growing our customer base and want to open up new markets in Asia and America. TUI is expanding its global presence and is therefore less dependent on vacation periods in Northern, Western, and Central Europe. We are a developer, investor and operator in the destinations, which makes us very different from our competitors. The transformation is in full swing: We are expanding our product portfolio and pushing ahead with digitalisation. An important step in our transformation is the further strengthening of our capital structure. With the proceeds from the successful placement of a convertible bond with a total volume of 487 million euros, we have bought back 80 per cent of the existing convertible bond, thereby reducing TUI's interest costs and extending its maturity profile. Moreover, we are further reducing the undrawn KfW credit line. Overall, with this step we are reducing our annual interest costs by around 18 million euros."
For the current travel summer, the Group continues to record a strong booking level of +6 per cent compared to the previous year, while prices remain robust. Average prices are 3 per cent higher compared to the previous year. For the current summer, 88 per cent of capacity has already been sold. In the UK market, bookings are currently up 5 per cent, while the number of TUI Germany customers is 10 per cent higher than last summer. Bookings for Winter 2024/25 are currently still at an early stage, with the start of the season looking promising. As usual, the UK market has been on sale longer than the other markets, with 32 per cent of the programme already sold. Bookings are at the same high level as last year. The other source markets also got off to a promising start, with bookings well ahead compared to the previous year at a robust price level.
The guidance for the financial year 2024 is based on the strong increase in underlying EBIT achieved to date, supported by a significant improvement in Hotels & Resorts and Cruises and the return to our normal hedging policy in Markets & Airlines. Against this background TUI, reconfirms the overall guidance for the financial year 2024:
The TUI Group is one of the world's leading tourism groups and operates worldwide. The Group is headquartered in Germany. TUI shares are listed in the MDAX index of the Frankfurt Stock Exchange and in the regulated market of the Lower Saxony Stock Exchange in Hanover. TUI Group offers its 20 million customers integrated services from a single source and forms the entire tourism value chain under one roof. The Group owns over 400 hotels and resorts with premium brands such as RIU, TUI Blue and Robinson and 17 cruise ships, ranging from the MS Europa and MS Europa 2 in the luxury class and expedition ships in the HANSEATIC class to the Mein Schiff fleet of TUI Cruises and cruise ships operated by Marella Cruises in the UK. The Group also includes Europe's leading tour operator brands and online marketing platforms, for example for hotel-only or flight-only offers, five airlines with more than 130 modern medium- and long-haul aircraft and around 1,200 travel agencies. In addition to expanding its core business with hotels and cruises via successful joint ventures and activities in vacation destinations, TUI is increasingly focusing on the expansion of digital platforms. The Group is transforming itself into a global tourism platform company.
Global responsibility for sustainable economic, environmental and social action is at the heart of our corporate culture. With projects in 25 countries, the TUI Care Foundation initiated by TUI focuses on the positive effects of tourism, on education and training and on strengthening environmental and social standards. In this way, it supports the development of vacation destinations. The globally active TUI Care Foundation initiates projects that create new opportunities for the next generation.