TUI AG (LSE:TUI) reported that increased customer numbers and higher prices in the fourth quarter helped the company to more than double full-year earnings.
The tour operator said in the three months ended 30 September 2023, revenue rose to €8.48 billion from €7.61 billion the year before, with underlying EBIT climbing to €1.20 billion from €1.04 billion.
This helped lift full-year EBIT to €977 million, more than double the previous year’s €409 million.
TUI said the full-year figure was in line with expectations and supported in the fourth quarter by a continued strong performance across all Holiday Experiences segments backed up by further operational improvement in Markets & Airlines.
The firm reported a 0.2 million increase in customer numbers in the quarter to 7.8 million, with the average load factor of 92% for the quarter up 1 percentage point from last year.
Revenue growth in the quarter was supported by higher volumes and in particular higher prices, lifting full-year revenue to a record €20.7 billion, up 25% from the year before.
Hotels & Resorts performed in line with expectations with a repeat of the strong performance in the prior year while Cruises achieved a significantly higher fourth-quarter result year on year, boosted by an improved operational performance across all brands.
Markets & Airlines reported a significant increase in underlying EBIT, generated by further growth in customer volumes at higher prices.
TUI reported positive operating cash flow in the fourth quarter of €463 million, which helped reduce net debt to €2.1 billion from €3.4 billion.
The tour operator said in Markets & Airlines, Winter bookings have maintained their positive momentum supported by higher prices.
Winter capacity is trending in line with booking levels, TUI said, with bookings to date up 11% against Winter 2022/23.
The average selling price is "well ahead" of Winter 2022/23 across key markets, up 5% overall and notably 1 percentage point ahead of the level published in September.
Bookings for Summer 2024 are still at a very early stage with 14% of the season sold. Initial indications are for a strong season with bookings in all markets starting promisingly, up 13% against Summer 2023 with average selling prices 4% higher.
Holiday Experiences trading remains on track to deliver in line with expectations for Winter 2023/24, with volumes and booked occupancy in all segments well ahead of prior year.
Looking ahead, TUI forecasts full-year 2024 revenue to increase by at least 10% year on year and underlying EBIT to increase by at least 25%.
The firm also said it is considering delisting in London following talks with shareholders.
"The executive board is currently considering, if an upgrade to a prime standard listing in Frankfurt with MDAX inclusion and a delisting from the London Stock Exchange would be in the best interest of shareholders," the firm said in a statement.