According to the research data analyzed and published by Finaria, Tui holiday bookings similarly rose by 500% following a UK government announcement to ease travel restrictions. EasyJet flight bookings rose by 337% while its summer holiday bookings rose by 630% week-on-week.
Based on City analysts’ projections, Tui is expected to return to profitability in 2022. Its total annual profits for that year is projected to reach €371 million.
Tui Revenue More than Halved in Fiscal 2020 from €18.9 Billion to €7.9 Billion
Similarly, airline and holiday group Jet2 had a 600% surge in bookings during the said period. For Thomas Cook, there was a 75% upsurge in website traffic. Customers made bookings on the site well into 2022.
Additionally, Q1 2021 saw a considerable jump in airline and travel company stock. Tui and EasyJet rose by 3% and 7% on the FTSE 250, respectively. On the FTSE 100, British Airways’ owner, International Airlines Group jumped by 3.5%.
In its FY21 Q1 earnings report, Tui posted a quarterly loss of €699 million, compared to a €147 million loss in Q4 2019. Its revenue fell by 87.8% to €468.1 million from €3.85 billion in the previous year.
According to Statista, Tui’s FY20 revenue plummeted by 58% from €18.9 billion in FY19 to €7.9 billion in FY20. Annual loss surpassed €3 billion. Before the pandemic, the group took on average 23 million people on holiday annually. For summer 2021, it only had 2.8 million bookings, 56% of summer 2019 bookings.
The company’s market cap also fell from £5.4 billion at the end of 2019 to £2 billion in mid-February 2021. It has since recovered significantly, rising to £4.16 billion as of March 24, 2021, according to Marketwatch. Its share price is at £359.60, up by 24.69% YTD. To reach City analysts’ profit projections for 2022, its sales for the year should surpass €17 billion.