Shares in TUI Group (LON:TUI) have fallen deep into negative territory in today’s session even as the blue-chip group posted a rise in turnover for the third quarter of its financial year. The blue-chip tour operator, however, revealed that the air traffic control strikes had impacted its results.
As of 09:38 BST, TUI’s share price had given up 9.38 percent to 1,434.00p, weighing on the benchmark FTSE 100 index which currently stands 0.62 percent lower at 7,728.34 points. The group’s shares have added just under 15 percent to their value over the past year, as compared with about a three-percent rise in the Footsie.
TUI posts Q3 results
TUI announced in a statement this morning that its turnover had climbed five percent to €5.02 billion in the third quarter of the group’s financial year. The group’s earnings per share, however, dipped 21.7 percent to €0.18, while airline disruption cost the company €13 million during the reported period, primarily as a result of air traffic control strikes in France. TUI reassured investors that action was being taken to address its operational resilience in light of this.
The tour operator further noted that while its high level of early bookings would help limit the impact of the prolonged good weather in its key markets, outperformance was less likely. TUI nevertheless noted that it expects to deliver at least 10-percent growth in underlying earnings before interest, taxes and amortisation.
Analysts weigh in
Proactive Investors quoted AJ Bell investment director Russ Mould as commenting that the market appeared “to be sceptical of TUI’s pledge to achieve full year guidance, perhaps mindful of its rival Thomas Cook guiding for results to be at the lower end of expectations last week”.