Highlights
First half underlying operating loss of £(317)m (H1 11: £(307)m) with a £13m improvement in the second quarter
Strong performance delivered by the UK:
- £48m improvement in first half underlying operating loss
- Result driven by increased sales of differentiated & exclusive content
- 47% of winter holidays booked online
- Summer 2012 trading overall remains in line with expectations with continued outperformance of the market in the UK
Continued strong Summer 2012 demand for differentiated product:
- UK 64% of bookings - up seven percentage points on prior year
- Nordics 76% of bookings - up five percentage points on prior year
- UK Summer 2012 controlled distribution at 90%, up six percentage points on prior year with online sales continuing to account for half of this
- Improved Summer 2012 trading performance in all other mainstream markets except France which remains difficult
- In A&D, Summer 2012 bookings are up 17% and sales (TTV) up 28% versus the prior year
- The business improvement programme is progressing to plan
- The net debt position at 31 March 2012 was £1,184m (31 March 2011: £1,182m)
- The Board proposes an interim dividend of 3.4p per share, an increase of 3%
Peter Long, Chief Executive of TUI Travel PLC, commented
"We are pleased with our overall performance for the first half. The UK delivered a strong Winter performance which attests to our focus on differentiated and exclusive product and being online driven - key elements of our modern mainstream strategy. Our outperformance in this market is continuing into the Summer season and we will ensure that we continue to optimise our position.
"In our online accommodation only businesses we continue to deliver healthy growth driven by new markets as well as increasing market share in more recently established markets.
"Given the challenging economic environment, we remain cautious, however, overall trading performance continues to be in line with the Board's expectations."
