TUI takes 10 mln Euro hit from Tunisia, confident on year

Travel operator Tui Group has announced how much its profits will be hit by the beach attack in Tunisia in June.

Overall, TUI reported a profit of €49.4 million (£35.2 million, $US54.9 million) for the third quarter, compared with a loss of €5.6 million (£4 million, $US6.2 million) in the same period previous year. Yet this came in below analysts’ expectations for a profit of €157m (£112m).

Of the 38 victims of the attack, in which gunman Seifeddine Rezgui opened fire on sunbathing tourists on the beach and a hotel in the resort of Sousse, 30 were British and a total of 33 were on TUI holidays.

TUI said most customers who had been forced to cancel their trips to Tunisia this summer have rebooked for an alternative destination.

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.

TUI also said that bookings to Greece in late June and the first half of July were hit by economic uncertainty – as the indebted country neared economic collapse before reaching a deal on a new bailout with creditors.

“With the increase in our operating profitability, the clearly noticeable decline in interest payments due to the reduction in Group debt and the more efficient tax grouping, we are committed to a progressive dividend policy”, the company said.

TUI joint chief executives Friedrich Joussen and Peter Long said supporting customers, their families and staff remained the group’s highest priority. Within our business model there is an inherent assumption that we will face a level of disruption as a result of external events.