TUI Travel (London), the parent of Thomson Airways (London-Luton and Manchester), reported its financial results for its fiscal year ending on September 30, 2014. The pretax profit for the fiscal year ending on September 30, 2014 was £362 million ($567 million) compared to £169 million ($264.7 million) for the previous year. Please see the financial analysis below by www.finspreads.com.
“We have delivered another year of out-performance against our growth roadmap achieving an underlying operating profit growth of 11% at constant currency rates2. This demonstrates the strength and resilience of our business model in what has been a competitive trading environment for many tour operators and airlines. The combination of our market leadership position, scale, focus on unique holidays distributed increasingly online and our relationship with the customer throughout their whole holiday experience continues to provide a strong basis for sustainable, profitable growth.
“The merger with TUI AG will strengthen and future-proof our combined Group. It will also enhance the certainty of long-term unique holiday growth and reinforce our clear competitive advantage through further control over the end-to-end customer experience. This will mark the start of an exciting new phase of growth, delivering significant opportunities and value to customers, employees and shareholders.”
UK package holiday company TUI Travel reported a notable 11% rise in underlying profit, above its recently raised guidance of 9%. Pretax profit to the year ending September 30, 2014 was £362 million compared to £169 million for the previous year, achieved on slightly lower revenues of £14.62 billion due to adverse currency translation impacts.. The travel company which is currently merging with German parent company TUI AG, intends to declare a second interim dividend of 20.5p per share once the merger is complete, taking the total annual dividend to 24.5p up from 13.5p last year.
These are really promising results for a company which has previously suffered heavily from reduced consumer spending and changing tastes. However the travel firm seems to have found a winning formula with over 63% of its winter programme 2014/15 already sold with mainstream bookings and bookings for summer 2015 up over 9% on an average price increase of 2%. The market was clearly impressed by the results and projected outlook for the firm and TUI Travel is currently trading up over 3.8% at 445p, adding to the phenomenal growth that they have experienced since May 2012 when TUI Travel´s share price was only 165p.
Copyright Photo: Ton Jochems/AirlinersGallery.com. Boeing 737-8K5 G-TAWG (msn 37266) holds short of the runway at Palma de Mallorca.
Boeing (Chicago) and TUI Travel PLC (London) have completed an order for two 787-8 Dreamliners. The deal, worth $424 million at current list prices, extends TUI Travel’s 787 commitment to 15 airplanes. TUI took delivery of its first 787-8 Dreamliner in May and now has four airplanes in service with Thomson Airways (London-Luton and Manchester).
TUI Travel originally ordered the 787 in February 2005. Currently, the Group’s subsidiary Thomson Airways is using the airplane on such routes as Thailand, Caribbean and the Maldives.
Copyright Photo: Ton Jochems/AirlinersGallery.com. Boeing 787-8 G-TUIC (msn 34424) taxies at the Turkish resort of Antalya.
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Aviation Partners Boeing (APB) (Seattle) has announced it has formally received an order from TUI Travel PLC for Boeing 737-800 Split Scimitar Winglets. This program is the culmination of a five year design effort using the latest computational fluid dynamic technology to redefine the aerodynamics of the Blended Winglet into an all new Split Scimitar Winglet. The unique feature of the Split Scimitar Winglet is that it uses the existing Blended Winglet structure, but adds new strengthened spars, aerodynamic scimitar tips, and a large ventral fin. This advanced technology winglet is the ultimate winglet in terms of performance, without increasing the existing wing span.
Earlier this year, APB launched the Split Scimitar Winglet program for the provisioned wing 737-800 (line number 778 and on) and 737-900 ER with an order from United Airlines. FAA supplemental type certification for the Boeing 737-800 is targeted for October 2013 and EASA certification planned for December 2013. Certification flight testing of Split Scimitar Winglets is currently underway.
APB estimates Split Scimitar Winglet Systems installed on a Boeing 737-800 will save TUI Travel up to 200 metric tons (65,000 gallons) of jet fuel per aircraft, per year resulting in a corresponding carbon dioxide emissions reduction up to 630 metric tons per aircraft, per year. The fuel savings can enable a 737-800 to increase its payload up to 3,300 pounds or increase its range up to 60 nautical miles. APB also expects to certify an improvement in low speed performance that will generate take-off benefits at high/hot or obstacle limited runways.
APB will also certify 6 additional Boeing Next-Generation 737 configurations. These include: structurally provisioned (line number 1545 and on) and non-provisioned (pre-line number 1545) 737-700 and BBJ1, non-provisioned (pre-line number 778) 737-800, and structurally provisioned (line number 778 and on) 737-900.
Nearly 5,000 Blended Winglet Systems are now in service with over 200 airlines in more than 100 countries. APB estimates that Blended Winglets have saved airlines worldwide more than 3.8 billion gallons of jet fuel to-date.
Boeing (Chicago) and TUI Travel PLC (London) announced a commitment today for 60 737 MAX airplanes, valued at $6.09 billion at list prices. The commitment by one of the world’s leading leisure travel groups includes 737 MAX 8s and 9s. Boeing looks forward to working with TUI Travel to finalize the details, at which time the order will be posted as a firm order to the Boeing Orders and Deliveries website.
“A major part of TUI Travel’s strategy is to provide our customers with unique holiday experiences that they can only get from us,” said Peter Long, Chief Executive, TUI Travel. “This multi-billion pound investment in the Boeing 737 MAX – representing the future generation of more fuel-efficient aircraft for our short and medium-haul programs – will be a further driver in delivering this.”
Top Copyright Photo: Rob Skinkis/AirlinersGallery.com. The new aircraft will replace the current generation of Boeing 737-800s. Thomson Airways’ 737-8K5 WL G-TAWK (msn 28836) is pictured at Manchester in the new TUI colors (please click on the photo for the full-size view).
Bottom Copyright Photo: Ole Simon. TUIfly was ranked the most fuel-efficient charter airline worldwide for short-haul and long-haul flights in the 2012 Airline Index published by the German environmental NGO, atmosfair, indicating how TUIfly’s investment in modern, more fuel-efficient aircraft and focus on efficient aeronautical procedures are yielding results. Thomson Airways came second for most efficient charter airline for short haul flights. TUIfly’s (TUIfly.com) Boeing 737-8K5 WL D-ATUD (msn 34585) in the special Haribo Goldbaren scheme climbs away from Frankfurt (please click on photo for full-size view).