Holiday giant TUI has reported strong double-digit percentage growth – in terms of both profit and revenue – for its latest financial year, with growth seen across all of its divisions.
Underlying earnings – for the 12 months to the end of September – surged 33% to €1.3bn and revenue was up 12% at €23.2bn.
All group segments – particularly hotels & resorts and cruises – contributed strongly to the group’s growth.
Sebastian Ebel, CEO of TUI said: “We have delivered what we promised. 2024 was a very good year for us. Our focus on operational excellence, rapid implementation of the defined measures to improve earnings and transformation will continue to deliver significant growth. The TUI of tomorrow is well positioned.
“In the financial year 2024, we achieved important milestones: In the Holiday Experiences segment, we are growing with our asset-right strategy. We are future-proofing the tour operator business in the Markets + Airline segment and positioning it dynamically. Of course, we will continue to focus on package holidays and our good cooperation with travel agencies.
“In all our activities, customer satisfaction and quality are our top priorities. In what remains a challenging market environment, the entire TUI team has shown that we have the right strategy, the right business model and the right people, who work for our guests every day with commitment, creativity and passion.
“Our goal remains to become more profitable, more efficient and stronger in all segments with TUI – and to do so globally. One topic that plays an important role in all our activities is sustainability. As one of the world’s leading travel groups, we want to set the standard for sustainability in the market. We are continuing initiatives across our business to deliver on our SBTi (Science Based Targets Initiative) 2030 targets.”
Mathias Kiep, Chief Financial Officer of TUI Group, said: “We look back on a successful financial year 2024, in which we also significantly improved our financial profile. The positive cash flow resulted in a significant reduction in net debt. With a leverage ratio of 0.8x, we remain on track to achieve our medium-term target of strongly below 1.0x. We also expect a positive development for the new financial year 2025. Our guidance here include a year-on-year increase in revenue of 5%-10% and an increase in underlying EBIT of 7-10 per cent, particularly supported by the expectations for summer 2025.”
TUI said bookings for winter 2024/25 have maintained the levels previously published, up 4%, while 62% of the winter programme has been sold, which is in line with the prior year.
In terms of outlook, TUI is targeting short-term year-on-year profit growth of 7%-10% and revenue growth of 5%-1-%; and medium term earnings growth of up to 10%.
