Shares in Tui Group jumped 7.5 per cent to 1,118p after results posted this morning showed a rise in profits – despite the terror attack in Tunisia and uncertainty over the Greek debt hitting its revenues.
Tui Group reported net income of €49.4m (£35.2m) in the three months to June 30, having made a loss of €5.6m the same time last year. Meanwhile, underlying earnings rose 13 per cent to €185m.
However, the travel operator added that it had been impacted to the tune of €10m in the third quarter by the attack on British tourists in Sousse, Tunisia.
Why it's interesting
The beach massacre at a holiday resort in Tunisia in June killed 38 holidaymakers, most of whom were British. Of these, 33 were on Tui holidays.
Tui Group said this was a "crystallisation" of risks that its business model is exposed to – such as natural catastrophes, outbreaks of diseases, social unrest and terrorist attacks. However, most customers who'd booked holidays to Tunisia this summer rebooked with the travel operator for alternative destinations.
The company has also been rocked by the Greek debt crisis which accelerated in July after a "no" vote in a bailout referendum. Greece has since agreed a draft deal with creditors and Tui said booking have increased recently.
"Bookings to Greece were impacted in late June and the first half of July by the economic uncertainty in the region, particularly from source markets Germany and Belgium. [However] we have seen a recovery in booking volumes to Greece in recent weeks," it said.
What Tui Travel said
Friedrich Joussen and Peter Long, chief executives of Tui Group, said:
This quarter was marked by the tragic events in Tunisia at the end of June. Supporting our customers, their families and our colleagues through this sad time remains our highest priority.
Recent weeks have also seen continued economic uncertainty in Greece. Within our business model there is an inherent assumption that we will face a level of disruption as a result of external events.
Tui Group managed to post a profit despite the terror attack in Tunisia and the Greek debt crisis.