Q1 2025 TUI AG Earnings Call Transcript
Key Points
- TUI AG (TUIFF) reported its 10th consecutive quarter of underlying EBIT growth, supported by strong performance in hotel, cruise, and TUI Musement segments.
- Revenues increased by 13%, driven by holiday experiences and market and airlines, with a positive outlook for the upcoming summer season.
- The company achieved a BB rating from Fitch, reflecting improved financial discipline and structure, returning to pre-pandemic levels.
- TUI AG (TUIFF) is benefiting from a global customer base, with increased demand from regions such as the Caribbean and Spain, contributing to higher occupancy and rates.
- The company is making significant strides in sustainability, with new ships ready for green methanol and LNG, aligning with its long-term sustainability goals.
- Market and airlines segment reported a decline of EUR30 million, primarily due to investments in the Nordic and Northern European markets.
- There is a concern about volume slowdown in Germany and negative bookings in the UK, which could impact future growth.
- Despite a strong start, the company faces challenges in maintaining cruise occupancy rates, which are down compared to pre-pandemic levels.
- The company is cautious about adding fixed capacity, relying on dynamic packaging for growth, which may not yield immediate profitability.
- TUI AG (TUIFF) faces competitive pressure in the UK market, with competitors increasing their capacity significantly, which could affect market share.
Good morning, everyone, and welcome to the TUI AG full year '25 Q1 results webcast. My name is Drew and I'll be the coordinator for today's call. (Operator Instructions) It is now my pleasure to hand over to Nicola Gehrt to begin. Please go ahead when you're ready.
Thank you. Good morning, ladies and gentlemen. A warm welcome to our first quarter, 2025 results presentation. My name is Nicola, and I'm Group Director Investor Relations, and I'm here with our CEO, Sebastian Ebel; and our CFO, Mathias Kiep.
As today we present not only our first quarter results, but we also hold our annual general shareholders meeting. That is why I would like to ask for your understanding that we will need to limit this call to about an hour. But I'm sure we will have sufficient time for a good Q&A session afterwards.
And with this I have the pleasure to hand over to Sebastian and Mathias to present another set of strong quarterly numbers. Dear Sebastian, over to you.
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