HANNOVER (dpa-AFX) - The world's largest travel group Tui is on course for business as it was before the coronavirus pandemic thanks to strong demand for vacations. Travel bookings for winter and summer are eight percent higher than a year ago, Tui announced ahead of the Annual General Meeting in Hanover on Tuesday. For the current financial year 2023/24, CEO Sebastian Ebel continues to expect record profits in day-to-day business. However, CFO Mathias Kiep did not want to commit himself to whether more guests are really traveling with Tui this time than before the Corona crisis.

The latest business development was well received on the financial market: Tui shares rose by more than four percent to 7.12 euros in Frankfurt this morning. They thus made up for the losses they had accumulated since the turn of the year. Analysts were positively surprised by the latest business figures.

The Group achieved an operating profit in the usually loss-making quarter from October to December: before interest, taxes and special effects (adjusted EBIT), the company posted a plus of 6 million euros after a minus of 153 million a year earlier.

In the past quarter, not only did six percent more guests travel with Tui - they also spent more money on average on their vacations than in the previous year. Turnover grew by 15 percent year-on-year to 4.3 billion euros. The net loss attributable to shareholders was roughly halved to just under 123 million euros. Travel companies are usually in the red in winter. They make their profits in the peak travel season in summer.

And according to the management, things are looking good for this. Customers have not only booked eight percent more trips with Tui for winter and summer than a year ago. According to figures to date, they are also spending an average of four percent more.

If business continues to grow at this rate, Tui is heading for the same level of customer numbers as in 2019, said CFO Kiep. In the previous financial year, the Group's guest numbers of around 19 million were still well below the 20.5 million recorded before the crisis. The slump in business as a result of the pandemic had plunged Tui into an existential crisis in 2020. The German government rescued the group from ruin with billions in aid.

Tui now sees itself on the upswing again. In the current financial year to the end of September, Ebel and Kiep want to increase operating profit before special items (adjusted EBIT) by at least a quarter. After 977 million in the previous year, Tui would thus achieve a record operating result of 1.2 billion euros. In the medium term, operating profit is expected to grow by an annual average of 7 to 10 percent.

The Group is still struggling with its debt burden from the coronavirus crisis. At the end of December, net debt stood at just under 4 billion euros, around 1.3 billion euros lower than a year earlier. This was mainly due to the money from a capital increase last spring. In the medium term, the Executive Board intends to further reduce debt in order to lower the interest burden and free up money for investments. In the past quarter alone, financial expenses amounted to more than 120 million euros.

Meanwhile, Tui once again has to arm itself against problems at aircraft manufacturer Boeing. As the delivery of new medium-haul jets from the 737 Max series continues to be delayed, the travel provider has extended leasing contracts for older jets in the Group fleet, according to Ebel. He therefore does not expect any flight cancellations, said the manager.

Following a near-accident involving a 737-9 Max, Boeing is facing stricter controls from the US aviation authority FAA. In addition, the manufacturer is not allowed to ramp up production of the entire 737 Max series for the time being.

Tui still has just under 60 aircraft in the series, reported Ebel. However, this does not include the 737-9 Max variant, on which a fuselage section was blown out on an Alaska Airlines flight at the beginning of January. Tui had only ordered the 737-8 and 737-10 versions. However, he does not expect the long version 737-10 to be delivered until 2025 or 2026, as the variant has not yet been approved by the authorities.

Meanwhile, Tui shareholders are expected to clear the way for a move of the company's listing from London to Frankfurt. Unlike before Brexit, most of the Group's shares now change hands in Germany. In addition, most Tui shareholders are from the European Union. Tui moved the main listing of its shares to London more than nine years ago. The reason for this was the merger of the Group with its British tour operator subsidiary Tui Travel.

To end the listing in London, the Tui management needs the support of shareholders with 75 percent of the votes. If it works, the Tui share will be included in the Prime Standard of the German stock exchange at the beginning of April, according to CFO Kiep. It is then expected to move into the MDax, the index of medium-sized stocks, in June.

Tui's management expects the change to result in simpler structures and advantages for the ownership structure of the Group's own airlines. Their traffic rights depend on whether Tui is majority-owned by shareholders from the European Union. However, this quota is "not even remotely a problem" for the European airlines, said Ebel in a video conference. Conversely, the problem does not arise for the British airline Tui Airways thanks to relaxed regulations in the UK./stw/mne/jha/