TUI Group Reports 2020 Q1 Earnings

TUI Results

TUI Group reported first quarter results today, with turnover in the cruise segment up to 238.4 million euro, compared to 190.5 million euro for the year prior.

Underlying EBIT was up 2 million euro, with the company citing annualized capacity from three new ships.

Costs were also up from the impact of IMO2020 and adverse FX effects, “which could not be fully recovered through pricing.”

TUI Cruises’ earnings were up due to the new Mein Schiff 2, although average daily rates decreased in the quarter from 149 euro to 144 euro, with the company noting the itinerary mix.

“TUI Cruises is likely to see limited growth for 2020 as a result of the strong increase in cruise capacity in the prior year,” the company said.

Marella Cruises, which operates older tonnage, saw its earnings decrease due to lower winter rates and itinerary disruptions in the Middle East and Asia, the company said, also noting the IMO2020 hit.

Although the British brand’s average daily rate was up to 143 euro from 137 euro, with the company pricing its newer ships at a higher ticket rate.

Hapag-Lloyd Cruises’ earnings were muted, the company said, due to previous strong comparables, drydock costs for the Europe and launch costs for the Hanseatic Inspiration.

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