UK holiday bookings went through the roof following an announcement on the upcoming easing of lockdown restrictions.
According to the research data analysed and published by Finaria, Tui holiday bookings similarly rose by 500% following a UK government announcement to ease travel restrictions. EasyJet flight bookings rose by 337%, while its summer holiday bookings rose by 630% week-on-week.
Based on City analysts’ projections, Tui is expected to return to profitability in 2022. Its total annual profits for that year is projected to reach €371 mln.
Tui revenue halved in 2020 to €7.9 bln
Similarly, airline and holiday group Jet2 had a 600% surge in bookings during the said period. For Thomas Cook, there was a 75% upsurge in website traffic. Customers made bookings on the site well into 2022.
Additionally, Q1 2021 saw a considerable jump in airline and travel company stock.
Tui and EasyJet rose by 3% and 7% on the FTSE 250, respectively. On the FTSE 100, British Airways’ owner, International Airlines Group jumped by 3.5%.
In its FY21 Q1 earnings report, Tui posted a quarterly loss of €699 mln, compared to a €147 mln loss in Q4 2019. Its revenue fell by 87.8% to €468.1 mln from €3.85 bln in the previous year.
According to Statista, Tui’s FY20 revenue plummeted by 58% from €18.9 bln in FY19 to €7.9 bln in FY20. Annual loss surpassed €3 bln. Before the pandemic, the group took on average 23 mln people on holiday annually. For summer 2021, it only had 2.8 mln bookings, 56% of summer 2019 bookings.
The company’s market cap also fell from £5.4 bln at the end of 2019 to £2 bln in mid-February 2021. It has since recovered significantly, rising to £4.16 bln as of March 24, 2021, according to Marketwatch.
Its share price is at £359.60, up by 24.69% YTD. To reach City analysts’ profit projections for 2022, its sales for the year should surpass €17 bln.