The tour operator giant blames the hot weather and strikes for its profit slide as Europeans stay at home.
Tour operator giant Tui has been hit by an 18% drop in its quarterly profits, which it blames on the European heatwave that encouraged staycations in northern Europe this year.
Profits fell to €193 million in the three months to the end of June, the Guardian newspaper reports. But it insists it will still achieve double-digit earnings growth this year. Bookings for next summer are 4% ahead of last year, it adds.
Tui also blames air traffic control strikes in France for causing flight delays and cancellations, as well as the timing of Easter.
“Tourism companies don’t usually like it when it’s hot – and it is hot. People want to go on holiday when it rains,” explained chief executive Fritz Joussen.
Russ Mould, an investment director at the stockbroker AJ Bell, says that the World Cup was also a factor.
Rival operator Thomas Cook is also warning that, with 20% of summer package holidays left to sell, profits will be low this year.
Meanwhile, weather forecasters are saying that warmer-than-average temperatures this year could last until October.