Wildfires in Greece value TUI £21.5m – however total earnings up

TUI has revealed latest wildfires in Greece value it round €25m (£21.5m) – but it surely has additionally returned to a 3rd quarter revenue for the primary time for the reason that pandemic.

The journey agency stated 12 repatriation flights, compensation payouts and buyer welfare bills had all contributed to the estimated value after it cancelled outbound journeys and evacuated 8,000 holidaymakers throughout the disaster in Rhodes.

It stated the Greek island accounted for round 5% of its summer time schedule – however stated 80% of its company there had been “unaffected” by the fires.

The disclosure got here in TUI’s new quarterly assertion – by which it reported underlying group earnings earlier than curiosity and tax of €169m (£145m) within the three months to June.

The determine is up sharply on the €27m (£23m) loss it reported throughout the identical interval final 12 months and its first third quarter revenue since COVID hit within the spring of 2020.

The Germany-based bundle vacation group stated common promoting costs surged by greater than 1 / 4 in contrast with summer time 2019, and have been 7% increased than final 12 months – however stated this mirrored clients’ willingness to prioritise spending on holidays.

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TUI stated the £21.5m estimated value of the wildfires could be added to its full 2023 outcomes – however stated the outlook for the 12 months total was encouraging.

Chief govt Sebastian Ebel stated: “Summer 2023 goes very effectively and demand for holidays stays excessive. The Mediterranean stays essentially the most sought-after vacation spot for summer time holidays.

“The heatwave in northern Europe in June and the wildfires in southern Europe have only dampened temporarily the previously strong development – but overall it will be a very good travel summer and a good year for TUI in 2023.”

Mr Ebel additionally stated the local weather in Greece was “not as it was described”, regardless of the nation battling 10 main wildfires in July, together with blazes exterior Athens and on Rhodes.

But he stated the corporate would broaden its portfolio of locations to mitigate in opposition to climate-related dangers, amid expectations that areas with extra reasonable temperatures, such because the Nordic nations, may develop into extra widespread.