TUI Travel Plc has reported a loss of 409 million pounds on revenues of 8.3 billion pounds for its nine-month period ending June 30, 2010, compared to a loss of 304 million pounds on revenues of 8.2 billion pounds last year.
For its third quarter ended June 30, 2010, TUI Travel reported operating income of 103 million pounds on revenues of 3.4 billion pounds, compared to operating income of 102 million pounds on revenues of 3.6 billion pounds last year.
According to TUI, operating income was in line with the previous year, excluding the volcanic ash impact, offset by weaker demand. The total impact of the ash disruption was estimated at 105 million pounds and almost 400,000 customers were affected.
For the past 12 weeks, booking volumes have been strong across all source markets, except the UK and the Netherlands.
While bookings to date are up 2 percent in the UK, TUI said the market has been particularly affected by airspace closures, good weather and the uncertainty surrounding the economy, resulting in a late booking pattern which has affected profitability. In addition, Germany has seen strong booking volumes, but in lower margin products.
Based on this, combined with the anticipated adverse foreign exchange translation, TUI said it expects the full year results to be at the lower end of expectations.
Among its many travel holdings, TUI owns and operates Thomson Cruises in the UK market.