TUI AG (LSE:TUI) swung back into profit in the financial third quarter, boosted by the rebound in travel and rising prices.
The package holiday operator said group revenue in the three months to 30 June 2023 was €5.3 billion, an increase of 19% from €4.4 billion last year, supported by higher volumes and prices taking revenue 11% above pre-pandemic levels.
Third-quarter underlying EBIT at €169.4 million compared to a loss of €27.0 million last year and was the first profitable quarter three since the pandemic.
"Current booking levels confirm our expectations for a strong Summer and we are on track to deliver on FY 2023 expectations," the firm said.
TUI said bookings were impacted in the short-term as a result of the wildfires in Southern Europe and flight cancellations to Rhodes, but have subsequently recovered as operations have resumed.
Hotels & Resorts surpassed the already strong performance in the prior year, reporting a fifth consecutive quarter above 2019, supported by improved operational performances across key brands, the company said.
The recovery in Cruises continued with the segment achieving a fifth positive quarter since the start of the pandemic while Markets & Airlines delivered a solid improvement, driven in particular by higher prices and strong demand.
Net debt improved to €2.2 billion from €3.3 billion last year.