TUI Travel has reported good turnaround progress this year, specifically citing improved Canadian performance as a factor. Although Canada itself has not made a profit, a significant decrease in losses has contributed to overall TUI operating profit rising by 11% to £447m in the 12 months ended September 30 September 2010. The positive results come despite weaker business in the U.K.
Full year revenue was down 2% at £13.5bn, although underlying pre-tax profit, which also excludes separately disclosed financial expenses, rose 4% to £337m. The impact of flight cancellations due to the ash cloud was £104m and the group's statutory pre-tax loss came to £36m.
‘‘In a difficult trading environment we have continued to achieve incremental synergy benefits and made good progress in delivering the turnaround opportunity during the year,” said Peter Long, chief executive.
It has been three years since the TUI merger with First Choice, and Long says he is pleased with the results since then.
“We have achieved a number of key successes, including the successful delivery of the synergy programme, the exit from scheduled flying operations in the U.K. and Germany, and the strong position we have established in the difficult Canadian source market. Our journey is not complete, however, and we have a number of remaining initiatives to drive further profit improvements.”
TUI Travel entered into a joint venture last year with The Sunwing Travel Group which now operates Signature Vacations, Sunwing and Sunwing Airlines as well as SellOffVacations.com
