TUI’s financial performance has resulted in a loss for the six months up to 31st March 2024. For the half year 2023-2024, TUI lost 330.5 million euros. This is a continuation of the loss-making in the first quarter. When considering the second quarter separately, TUI’s financial performance resulted in a loss of 240 million euros. So as one can see, the company has made a loss for two quarters in a row.
It does appear however that the loss has reduced for both the second quarter as well as taking the half year as a whole into account. In the results for the second quarter of the 2022-23 financial year taken separately, TUI’s financial performance resulted in a loss of 326.2 million euros, which means that the loss for this year has reduced by 24.3%.
With regards to the half-year 2023-24 results taken as a whole, the loss has reduced by a significant 40.8% with the company having made a loss of 558 million euros in the six months up to 31st March 2023. As one can see therefore even though the company is still in the loss zone TUI’s financial performance has still improved. In addition, the fact that the company made a profit at the end of last year, despite making a loss at the half-year mark, suggests that the company is still likely to do better by the end of this year as TUI’s financial performance has improved.
Credit Rating Improved
In terms of revenue, TUI’s financial performance resulted in a figure of 7.9525 billion euros in the half year 2023-24. This is 15.2% higher than the 6.9034 billion euros made at the same time last year. This shows that TUI is becoming more popular with customers. With regards to the second quarter assessed separately, there was also an improvement in revenue by 15.8%. This shows that, like in the first quarter, there has also been a significant improvement in TUI’s revenue in the second quarter. In terms of the half-year results, the fact that revenue has increased by 15.2% but the loss has reduced by 40.8% indicates that cost control has also improved during the past year.
In addition to improving revenue TUI has also improved its credit rating having been given an improved credit score by credit rating agencies SGP (B+ rating) and Moodys (B1 Rating). This means that the company will be looked at more favourably by lenders and will therefore be able to borrow at lower interest rates. This is good news for the company and shows that TUI’s financial performance has improved in the management of its debts.
Sustainability
In other developments, TUI is continuing to reduce carbon emissions through its program Sustainability Agenda. It is launching a group policy on Diverse, Sustainable, and Ethical Sourcing. This policy not only focuses on areas such as energy usage, emission reduction, and water conservation, but it also focuses on a broader agenda of diversity, inclusion, and good ethical conduct. In addition, TUI is also working to reduce food waste through the use of technology and is also encouraging socially responsible tourism reducing the adverse environmental impact for locals living in the area.
As one can see TUI is improving its sustainability credentials. In addition, TUI’s financial performance is improving. However, the company is still in the loss zone. We have to wait to see how this progresses.