Tui pays £63 million price as airport chaos hits holidaymakers
Airport chaos cost the travel giant Tui an extra €75 million (£63 million) as hundreds of flight cancellations hit the holday plans of its customers in the three months to June.
The German company was caught up in the disruption that began in the Spring after the final Covid restrictions were lifted and Britons stampeded to book trips away at a time of chronic labour shortages.
Tui said that “the combination of unparalleled industry ramp-up after the COVID 19-pandemic compounded by a tight labour market, has seen the aviation industry confronted with significant operational issues and disruptions, resulting in the increase of delayed departures and flight cancellations.”
The company made a loss of €27 million in its third quarter, a huge improvement on the €669.8 million loss suffered a year earlier as travel rebounded from the pandemic. Without the airport disruption it would have made its first quarterly profit since Covid struck in Spring 2020.
Average holiday prices are at a “very high” level over the summer, up 18%, with customers celebrating their first foreign trip for three years in many cases with room upgrades and longer stays.
Chief executive-designate Sebastian Ebel said: “People want to travel and holidays continue to top the list of planned spending – this has not changed. Although the entire European airline sector continues to face challenges, we have successfully ramped up our business with a significant increase in demand and achieved a good third quarter.”
