Many feared that recessionary pressures would dampen travel demand, but the results of airlines such as Ryanair (LON:RYA), Wizz Air (LON:WIZZ) and easyJet (LON:EZJ) showed promising momentum and indicate that consumers are preparing for their holidays.
TUI Group, one of the world’s largest tour operators, said its revenue in the first quarter reached 3.800 billion euros ($4 billion) thanks to promising winter and summer bookings, while its negative operating result was almost halved to -000.158 million euros. compared to -7 million a year earlier.
The next bookings for the winter and summer seasons of 2023 reach 8.7 million.
Although European consumers are facing the highest inflation levels in decades, demand for holidays has been resilient to date. Low-cost airlines such as Ryanair, Wizz Air and easyJet recorded strong bookings for the summer at the beginning of the year.
Revenue improved by €1.400 billion to €3.800 billion year-on-year, with hospitality posting growth of around one million guests to 3.3 million year-on-year in the previous quarter.
Demand over the past four weeks has also surpassed pre-COVID-19 levels, according to TUI, with prices rising year-on-year.
The company’s Hotels and Resorts segment also recorded 71% occupancy between October 2022 and March 2023, up from 56% last year.
Separately, TUI shareholders are expected to vote on Tuesday on a capital increase plan to repay financing obtained from Germany’s Economic Stabilization Fund.
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