Category Archives: TUIfly Nordic

TUI Group reports a €3.0 billion annual loss, but is upbeat for 2021

TUI Group has issued this financial report for the fiscal year (October 1, 2019 through September 30, 2020):

  • Global reorientation measures accelerated and cost target raised: annual savings of 400 million euros announced
  • Demand for travel is rising: 50 percent of the program for May 2021 already booked
  • Summer 2021: average prices +14 percent – bookings 3 percent higher than for summer 2019
  • Revenue in Corona year reaches 7.9 billion euros1 (previous year: 18.9 billion euros)
  • Significant cost reductions limit loss for the full year:underlying EBIT -3.0 billion euros1 (previous year: 893.5 million euros)
  • TUI has liquid funds amounting to 2.5 billion euros2
  • CEO Fritz Joussen: “Very rapid cost and liquidity measures, an accelerated realignment and our flexible business model have enabled us to steer the Group through the crisis. TUI is ready for a speedy and successful resumption of travel activities as soon as the lockdowns are lifted and destinations reopen. The prospect of vaccinations from the beginning of the year will significantly increase demand for summer holidays in 2021. We are prepared for a new start after the crisis”.

TUI is preparing intensively for a new start in 2021 after the corona crisis year 2020. The pandemic is not over, but there is light at the end of the tunnel and the prospects for tourism and for TUI are good. The demand for holiday travel is there – consumers in all age groups say that traveling is one of the most missed activities for them in the Corona year. 2021 will be a transition year for tourism, and 2022 is expected to see a return to pre-Corona levels. In particular, the holiday sector will recover faster than the sector as a whole. TUI had made an excellent start to the financial year before the outbreak of the pandemic, but the worldwide travel warnings since March 2020 then forced the Group to largely discontinue business. Among other things, there was no Easter business, no travel at Whitsun and only very limited summer business in the Corona crisis year 2020. The Group introduced cost-cutting and financing measures at an early stage and accelerated the global realignment. In addition to securing additional liquidity, extensive cost-cutting projects were launched. The long-term goal of reducing annual costs has been raised from the previous 300 million euros to the current 400 million euros.

Fritz Joussen, CEO of the TUI Group: “The rapid measures to cut costs and secure liquidity are important for the Group. They are a stable foundation for the future. TUI was in perfect health before the crisis and we want to return to our former strength as quickly as possible. The market is intact, our business model is future-proof and customer demand is there. Holiday travel remains very relevant for people. At the same time, international tourism is strengthening the southern euro zone and North Africa in a special way. We are very well positioned to resume operations on a larger scale as soon as the lockdowns are lifted and destinations are reopened. Our business model with our own tour operators, the travel agencies, aircraft, hotels and ships under the TUI umbrella makes a resumption possible very quickly. The prospect of successful vaccinations from the beginning of the year makes us confident. All indicators point to a successful restart of the travel business as soon as the pandemic is over. We are prepared for this new start. We are consistently continuing the change we have initiated in order to be better and more efficient after the crisis”.

Group transformation accelerated – TUI becomes more digital, leaner, more efficient
The transformation and expansion of the Group’s digital platforms, which was initiated before the crisis, is being implemented consistently and has received a further boost in the pandemic. In all areas of the Group, the pandemic has further accelerated the digitalization of the business. Wherever it is in the interest of the customer, services will be digitalized even more in the future. The maxim is more and better service for the benefit of the customer. At the same time, digitalization offers considerable potential for efficiency and cost reduction. A comprehensive cost-reduction program was launched in the spring.

Cost reductions implemented in the short term limit loss for the year as a whole – revenue at around 8 billion euros
The first five months of the 2020 financial year (October 2019 to February 2020) were very successful for TUI, with a record booking rate of +14 per cent in January. In mid-March, the Group had to completely discontinue all travel activities due to the worldwide travel warnings. The tourism group was only able to generate revenue again when it was able to fly its first holiday guests to Majorca in mid-June in a pilot project and a limited resumption of operations from July onwards. Greece was particularly strong as a holiday destination in 2020. Since the new start in the summer, TUI has safely made holidays possible for more than two million guests. Underlying EBIT on a constant currency basis totaled -3.0 billion euros(previous year 893.5 million euros). Revenue amounted to 7.9 billion euros and was 58 per cent down on the previous year (18.9 billion euros). The sale of Hapag-Lloyd Cruises to the joint venture TUI Cruises, jointly operated with the Royal Caribbean Group, was initiated before the crisis. The transaction was successfully completed in the summer despite the difficult crisis environment. The proceeds additionally improved the Group’s liquidity. In addition, TUI had reached an agreement with Boeing to compensate for the consequences of the 737 MAX flight ban.

Financing and liquidity secured for ongoing pandemic
In view of the persistently volatile market environment and the continuing travel restrictions, TUI AG has agreed an additional financing package totaling 1.8 billion euros with private investors, banks and the German government. The package agreed last week includes a capital increase with subscription rights of around 500 million euros, the Group’s anchor shareholder has already confirmed his participation. It also includes a convertible silent participation of the Economic Stabilization Fund in the amount of 420 million euros. The financing package strengthens TUI’s position against the backdrop of increasing travel restrictions due to a renewed rise in the number of infections and the associated shorter-term booking behavior of some customers. The Group is securing liquidity during the ongoing pandemic.

Forecast for resumption of extensive travel activities in 2021 not reliably possible 
Due to the continuing high incidence of infection and the resulting lockdowns in the markets and only a few available travel corridors, it is not possible at this stage to make a reliable forecast of the extent and period of travel activity in 2021. At present, trips from the most important core markets can be made in particular to the Canary Islands as a popular winter destination. Cruises around the Canary Islands without shore leave (Blue Voyages) also take place.

Total bookings across all markets for winter 2020/21 are currently 82 per cent lower than in the previous year, roughly in line with the reduced capacities. Average prices are four per cent higher. Bookings for summer 2021 are three per cent higher than for the regular summer 2019. Average prices for the summer 2021 program are currently 14 per cent higher than for 2020.

Positive outlook for the tourism sector and TUI after the pandemic
The unbroken high level of consumer interest in holidays promises a rapid recovery for the holiday sector if the Corona situation eases. Tourism will remain a growth industry in the long term. As a safe and reliable form of travel, package tours in particular will play an important role in the resumption of travel. The cruise segment is also expected to see a complete resumption of business as soon as vaccines become widely available. The restart of cruises in summer 2020 has demonstrated the great interest of customers. With strong holiday brands, differentiated products and broad-based distribution in the key European markets, TUI is well positioned to get back on track successfully after the pandemic.

All photos by the group.


1) Pro forma calculation according to IAS 17

2) As of 30 November 2020, including 3rd financing package and redemption of the senior bond in the amount of 300 million euros

TUI welcomes its first ever robotic humanoid employee

  • Pepper will be part of TUI Nordic´s Data and Machine Learning Team​
  • Robot Assistant has job description and personal goals – just as every TUI employee

The humanoid robot commonly known as “Pepper“ is the latest employee to be hired by TUI Nordic. Pepper, named Pepper 2E, will work as a Robot Assistant and be a part of TUI’s new Data Analytics and Machine Learning team. TUI is the first travel company in the world to incorporate robotics in this way.

“Automation, AI and Robotics are important elements of TUI’s future. We already have some of the best specialists in this field and I am excited to see how Pepper 2E will contribute to our team. And most importantly, I hope he sparks curiosity and engagement with all of our TUI Nordic colleagues”, says Alexander Huber, Managing Director of TUI Nordic.

Pepper 2E started on August 14, 2018 and will primarily be based in TUI’s Stockholm office. The humanoid robot has a detailed job description as well as set “personal” goals he will be evaluated on, just as any regular TUI employee. The main responsibility of the Robot Assistant is to inspire innovation, curiosity and technological pioneering. Furthermore, the Robot Assistant will help visitors as well as colleagues and external customers with everyday questions and problems.

Elke Eller, HR Director of TUI Group and Member of the Board says: “As TUI Group, we are shaping the future of travel in many areas. Employees like Pepper 2E can support our teams. At the same time they give us an impression of what the work of the future might look like. The “hiring” of Pepper 2E stands for curiosity about the future and openness for new technologies. These are important prerequisites for the success of the digital transformation of TUI. Välkommen, Pepper!”

As a true TUI employee, Pepper 2E will go through the usual steps of onboarding. He has a manager to report to and is member of a team that will incorporate him in their day-to-day tasks. He will spend the first few months hovering around the office getting to know the company and his new human colleagues.

ABOUT PEPPER

  • Pepper understands and speaks in numerous languages and can understand human emotions.
  • Pepper’s touch screen increases his capacity to interact and enables him to enhance communication by providing visual information.
  • With entirely programmable platforms, Pepper offers manifold usage possibilities to enrich the experience.

In other news, TUI fly has made this announcement:

TUI fly’s sustainability strategy remains on its successful path. This is demonstrated by this year’s progress report on TUI fly’s environmental statement, providing information on the progress delivered by the environmental programme in the framework of EMAS (Eco-Management and Audit Scheme) certification.

Average jet fuel consumption was reduced to 2.52 litres per one hundred passenger kilometres. Moreover, the independent climate protection organisation atmosfair again rated TUI fly as Germany’s most climate-efficient airline.

Its overall global rating is also remarkable: TUI fly has again been named one of the world’s top airlines, ranking third on the global list. The pole position is held by its British sister airline TUI Airways.

“Our flights are already 27 percent more climate-efficient than those operated by the six largest European airline. We are committed to continuing these efforts in order to further optimise the climate efficiency of our flights. We thus render a significant contribution towards delivering TUI Group’s “Better Holidays, Better World” sustainability strategy, aimed at reducing the ecological footprint and promoting people and regions in the destinations”, said Roland Keppler, CEO TUI fly.

Numerous measures have also been launched on the ground to ensure environmentally-friendly operations. In this context, TUI fly has now launched charging stations for electric vehicles at the employees’ car park at the head office – in cooperation with the energy utility Enercity. “In order to ease the start into e-mobility for our employees, they can charge their electric cars free of charge at these stations. We will also convert our vehicle fleet.

To that end, we are currently exploring the launch of electric vehicles for aircraft maintenance at the apron,” said Roland Keppler. TUI fly’s environmental programme includes measures for 18 destinations. It ensures the continuous transformation to more environmentally friendly operations covering all business areas.

The new Boeing 737 MAX aircraft (above) launching in 2019 will contribute towards that goal. TUI Group already operates five aircraft of the latest generation of 737s. At 16 percent, they have even exceeded expectations regarding fuel and emissions savings.

TUI Nordic welcomes the first Boeing 737-8 MAX 8 on a biofuel delivery flight

TUI on February 26 proudly welcomed the first ever Boeing 737 MAX 8 (SE-RNA, msn 44589) delivery flight on bio jet fuel, an important part of TUI’s commitment to the future of sustainable aviation. The flight from the Boeing manufacture in Seattle to Stockholm was performed with 30% blend biofuel.

The pictured SE-RNA is named “Rhodes Colossus”.

This was one of the most carbon-efficient flights ever accomplished by this aircraft type. The 737 MAX 8 was the second delivery of this aircraft to the world’s leading tourism business, this time to TUI Nordic.

One month ago the TUI Group welcomed its very first 737 MAX 8 at TUI Belgium in Brussels. Both aircraft are the initial deliveries of a large fleet renewal at TUI Airlines with a total 72 aircraft and to be completed by 2023.

The massively successful 737 MAX is considered the latest in aviation technology. This aircraft type has 14 percent lower kerosene consumption and therefore 14 percent lower carbon emissions compared to the aircraft of this size previously operated by TUI fly. The aircraft has also a 40 percent smaller noise footprint supporting TUI’s commitment in aviation to sustainability. TUI Group have made a significant investment in their aviation segment and ordered a total of 72 new 737 MAX 8 and 10´s.

LONG TERM COMMITMENT

A more sustainable approach to aviation is an important part of TUI’s long term sustainability strategy – Better Holidays, Better World. TUI aims to operate Europe’s most carbon efficient airlines and reduce the carbon intensity of its operations by a further 10% by 2020. TUI is currently looking into suppliers in the Nordics as well as in Europe and is in the process of developing a sustainable aviation fuels strategy.

“Biofuel represents a significant opportunity for reducing aviation’s carbon footprint and achieving its environmental goals. Our collaboration with TUI in 2015 on the Boeing ecoDemonstrator Program included testing of biofuel, and this 737 MAX delivery flight is a further demonstration of TUI’s interest in bringing price competitive biofuel to market”, said Sean Newsum, director of environmental strategy at Boeing Commercial Airplanes.

By the end of 2018, a total of nine 737 MAX 8 will be delivered to the airlines of TUI Group. These aircraft will be operated by TUI in Belgium, Sweden, the United Kingdom and the Netherlands. The first 737 MAX for TUI fly Germany is scheduled to be delivered in early 2019. TUI Group has ordered the 72 new aircraft in total to renew its narrow-body aircraft fleet by 2023 according to the current planning.

All photos by TUI Nordic.

TUI Group finalizes its order for one Boeing 787-9, converts two 787-8 orders to the larger 787-9

Boeing logo (medium)

Boeing (Chicago, Seattle and Charleston) and TUI Group, one of the world’s largest integrated leisure travel companies, have finalized an order for one 787-9 Dreamliner with an option for one further 787-9. The order is valued at $257 million at current list prices. TUI Group also announced that it will substitute two unfilled orders for 787-8s for two 787-9s.

TUI Group logo-1

The European leisure group will operate a fleet of 13 787-8s from this summer and with today’s announcement will add three 787-9s to its fleet within the next three years.

The 787-9 complements and extends the 787 family. With the fuselage stretched by 6 meters (20 feet) over the 787-8, the 787-9 will fly up to 40 more passengers an additional 830 kilometers (450 nautical miles) with the same exceptional environmental performance – 20 percent less fuel use and 20 percent fewer emissions than the airplanes they replace.

There are six airlines in the TUI Group operating 144 medium and long-haul aircraft, including the 787. The airlines are TUIfly, Thomson Airways, TUIfly Nordic, Jetairfly, Corsair International and ArkeFly (Arke), serving more than 180 destinations around the world. Throughout its history, Boeing has delivered more than 165 airplanes to TUI Group airlines. As well as the orders for 787s, TUI Group also has ordered 60 737 MAXs.

In addition to TUI Group’s selection of the efficient 787 Dreamliner and 737 MAX, TUI Group is a partner on the Boeing ecoDemonstrator 757, which is currently testing new technologies to reduce airplane carbon emissions and noise.

Videos: The Thomson Boeing 787-8.

Video: Flight review: Thomson Boeing 787-8 to Puerto Plata: This is a flight review of our Thomson Airways Boeing 787-8 Dreamliner flight to Puetro Plata (Gregorio Luperón International Airport) in the Dominican Republic in the Caribbean. We flew in economy class called “Dreamliner Class” on the Dreamliner. All footage of the journey is filmed from the economy class cabin. Our flight crew was mainly British with a Scandinavian stewardess on board too. Our Thomson Airways Dreamliner (Boeing 787-8) had registration number G-TUIA and was named “Living the Dream”. Our flight started at Copenhagen Airport in Denmark and the aircraft passengers where mainly Scandinavians (Swedish and Danish nationality). Our charter holiday trips where booked via Star Tour (name for TUI in Denmark) (Fritidsresor as TUI are called in Swedish) which is the same as TUI travel in the UK and Germany.

Copyright Photo below: Evert Keijzer Ironbird Photography/AirlinersGallery.com. Jetairfly (TUI Airlines Belgium) Boeing 787-8 Dreamliner OO-JDL (msn 34425) beautifully flies over the English Channel in the 2012 TUI livery.

Jetairfly aircraft slide show: AG Airline Slide Show

 

 

 

TUI Travel commits for 60 Boeing 737 MAX aircraft

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.”

The TUI Travel airlines are Arkefly (Netherlands), Corsair International (France), Jetairfly (Belgium), Thomson Airways (UK), TUIfly (Germany) and TUIfly Nordic (Sweden). This graph shows TUI Travels’ brands and market shares in these key European markets:

TUI Travel Sectors (TUI)(LR)

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).

Arkefly: AG Slide Show

Corsair International: AG Slide Show

Jetairfly: AG Slide Show

Thomson Airways: AG Slide Show

TUIfly: AG Slide Show

TUIfly Nordic: AG Slide Show

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).