TUI loss widens, but lower margins for bookings

TUI AG (TUI1.XE) said Tuesday that net loss for the first quarter of fiscal 2019 widened as the company was hit by an unusually long and hot summer in Northern Europe.

Net loss for the three months ended Dec. 31 was 139.1 million euros ($157.2 million) compared with a loss of EUR109.2 million in the year-earlier period, the German travel group said.

TUI posted a widened underlying loss before earnings before interest, taxes and amortization at constant currency–its preferred profit measure–of EUR84.1 million compared with a loss of EUR36.7 million in the same period a year earlier.

A long, hot summer in Northern Europe, overcapacity in western Mediterranean destinations and a weaker pound as a result of Brexit uncertainty weighed on the company’s first-quarter performance, TUI said.

Quarterly revenue rose 4.4% to EUR3.70 billion from EUR3.55 billion a year earlier, the company said.

The company said bookings for the summer 2019 season are in line with the prior year, although at lower margins.

TUI warned last year that it expected underlying Ebita at constant currency for fiscal 2019 to be in line with that of fiscal 2018, having previously guided for an increase of at least 10%.

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