TUI Group Reports Q3 2019 Results

Mein Schiff 5

TUI Group today announced its third quarter results with bright spots driven by its trio of cruise lines despite Brexit worries and the grounding of the Boeing 737 MAX

Underlying EBITA increased by 13 million euro for TUI's three cruise brands: TUI Cruises, Marella Cruises and Hapag-Lloyd Cruises.

Turnover increase to 256.3 million euro compared to 222.7 million euro for the third quarter of 2018, while daily rates were nicely up at both Marella Cruises and Hapag-Lloyd Cruises.

A presentation noted high occupancy in the German market for TUI Cruises despite capacity growth, thanks to TUI's differentiated premium product. TUI saw a near 29.9 percent increase in capacity days as it grew fleet capacity, with the average daily rate reported at 190 euro, down from 200 euro in the third quarter of 2018. 

The company also noted Marella Cruises was well-booked for the summer season, with increased yields, thanks to its fleet modernization program.

All three brands saw growth in the quarter from additional capacity versus prior year, the company said.

  • TUI Cruises result was up by 9 million euro versus prior year.
  • As expected, the increase in capacity of 30% (new Mein Schiff 1 launched H2 FY18 and new Mein Schiff 2 launched Q2 FY19) helped to deliver a strong contribution in the quarter.
  • Average daily rate was down 5% to 190 euro compared to prior year, which reflects in part our itinerary mix and the significant increase in German ocean cruise capacity this year.
  • Marella Cruises underlying EBITA was up by 3 million euro reflecting the addition of Marella Explorer 2 launched in May and average daily rate increasing by 5%.
  • The result was partially offset by the exit of Marella Spirit in Q1 of this financial year.
  • Hapag-Lloyd Cruises underlying EBITA increased by 1 million euro on prior year, driven by average daily rate up 2% across the fleet and the new Hanseatic nature joining the fleet in May, partially offset by the exit of Hanseatic at the start of FY19.
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