Latest news with #BritishAirways-owner
RTÉ News
5 days ago
- Business
- RTÉ News
Wizz Air profit slumps on grounded planes, shares tumble
Budget carrier Wizz Air's grounded planes that are awaiting engine repairs took their toll on annual profits today, sending the shares down 23%. Wizz Air had 37 aircraft grounded as of May 9. By the end of the first half of its 2026 financial year, it expects 34 aircraft to remain grounded, with a repair shop visit expected at around 300 days. The planes have been affected by problems with RTX-owned Pratt and Whitney engines, limiting the airline's ability to increase capacity. It has issued two profit warnings in the past year. "You look at the performance of the supply chain, of the industry, and there are cracks all over the place," Chief Executive Jozsef Varadi told Reuters in an interview. Varadi previously said he expected the airline to be impacted by the engine repair issues for another two to three years. "We have the benefit of more than a year of experience operating under these unique circumstances – conditions airlines would never experience when demand exceeds supply," he said in the statement today. Operating profit for the financial year ended March 31 fell 61.7% from a year ago to 167.5 million euros missing the 246 million euros projected by analysts polled by LSEG. The London-listed shares fell 26% to 1,227p at 9.10am (GMT), having dropped 48% year-on-year to continue the carrier's streak as the worst stock performer among European airlines. Wizz Air has subsidiaries in Hungary, Britain, Abu Dhabi and Malta. That appeared to weigh on other airlines, with Lufthansa, easyjet and British Airways-owner IAG down 1.5% to 2.7%. European airlines have warned of longstanding delivery delays and uncertainty around maintaining a boom in post-COVID demand amid economic turmoil tied to US President Donald Trump's tariff threats. The sector has, however, benefited from lower fuel prices. Wizz said ticket prices were slightly lower than last year. Analysts have pointed to other potential rising costs. In particular, costs due to the retiring of Wizz's A320ceo fleet projected for next year. The company said it would not provide guidance for 2026 at this stage of the year, citing limited visibility.
Leader Live
14-05-2025
- Business
- Leader Live
Tui summer bookings slow as boss warns European economy ‘needs new momentum'
The company, which is Europe's largest travel operator, said summer sales are 1% down compared with the same point last year, with a pipeline of about 8.6 million bookings for the key holiday season. It said UK summer bookings are at the same point compared with 2024, just under two-thirds of its total offerings sold, while in Germany bookings were down 3% year-on-year. It blamed the overall slowdown partly on Easter falling later this year in April, which in turn pushed consumers' summer holiday bookings back and impacted its results for the six months to March. Nonetheless, shares fell on Wednesday, after airlines including British Airways-owner IAG reported stronger results for the first quarter of 2025. Chief executive Sebastian Ebel said that given recent economic 'uncertainties' the company's focus is on 'margin protection and cost reduction'. He said: 'Given the economic conditions, 2025 will be challenging. Europe needs new momentum. 'We must return to an overall economy that is growing. More investment, more freedom – less regulation and less bureaucracy. 'This will strengthen the economy and consumer behaviour.' Tui reported widening losses for the six months ending March 31, with reported losses coming in at 217 million euros (£182.6 million). Meanwhile, revenue over the same period rose by about 8% to 8.6 billion euros (£7.2 billion), partly helped by growing business in its cruise business, after it launched two new ships.
North Wales Chronicle
14-05-2025
- Business
- North Wales Chronicle
Tui summer bookings slow as boss warns European economy ‘needs new momentum'
The company, which is Europe's largest travel operator, said summer sales are 1% down compared with the same point last year, with a pipeline of about 8.6 million bookings for the key holiday season. It said UK summer bookings are at the same point compared with 2024, just under two-thirds of its total offerings sold, while in Germany bookings were down 3% year-on-year. It blamed the overall slowdown partly on Easter falling later this year in April, which in turn pushed consumers' summer holiday bookings back and impacted its results for the six months to March. Nonetheless, shares fell on Wednesday, after airlines including British Airways-owner IAG reported stronger results for the first quarter of 2025. Chief executive Sebastian Ebel said that given recent economic 'uncertainties' the company's focus is on 'margin protection and cost reduction'. He said: 'Given the economic conditions, 2025 will be challenging. Europe needs new momentum. 'We must return to an overall economy that is growing. More investment, more freedom – less regulation and less bureaucracy. 'This will strengthen the economy and consumer behaviour.' Tui reported widening losses for the six months ending March 31, with reported losses coming in at 217 million euros (£182.6 million). Meanwhile, revenue over the same period rose by about 8% to 8.6 billion euros (£7.2 billion), partly helped by growing business in its cruise business, after it launched two new ships.
Glasgow Times
14-05-2025
- Business
- Glasgow Times
Tui summer bookings slow as boss warns European economy ‘needs new momentum'
The company, which is Europe's largest travel operator, said summer sales are 1% down compared with the same point last year, with a pipeline of about 8.6 million bookings for the key holiday season. It said UK summer bookings are at the same point compared with 2024, just under two-thirds of its total offerings sold, while in Germany bookings were down 3% year-on-year. It blamed the overall slowdown partly on Easter falling later this year in April, which in turn pushed consumers' summer holiday bookings back and impacted its results for the six months to March. Nonetheless, shares fell on Wednesday, after airlines including British Airways-owner IAG reported stronger results for the first quarter of 2025. Chief executive Sebastian Ebel said that given recent economic 'uncertainties' the company's focus is on 'margin protection and cost reduction'. He said: 'Given the economic conditions, 2025 will be challenging. Europe needs new momentum. 'We must return to an overall economy that is growing. More investment, more freedom – less regulation and less bureaucracy. 'This will strengthen the economy and consumer behaviour.' Tui reported widening losses for the six months ending March 31, with reported losses coming in at 217 million euros (£182.6 million). Meanwhile, revenue over the same period rose by about 8% to 8.6 billion euros (£7.2 billion), partly helped by growing business in its cruise business, after it launched two new ships.
RTÉ News
14-05-2025
- Business
- RTÉ News
TUI posts slowdown in its summer bookings
Europe's largest travel operator TUI has today flagged a 1% drop in summer bookings, which knocked its shares down nearly 7% in early trading. TUI, which maintained its 2025 outlook, blamed the shift in summer bookings on a later Easter, which impacted most airlines' January to March reporting, But European carriers Air France-KLM and British Airways-owner IAG so far have reported a stronger January to March. In a statement, CEO Sebastian Ebel said that given economic conditions, 2025 will be "challenging". "Europe needs new momentum. We must return to an overall economy that is growing," he said. Aanalysts and investors pointed particularly to the German market as a weak link. "The weakness in Germany could suggest we move away from the top end of guidance (if trends continue)," analyst Ed Vyvyan at Redburn Atlantic said. A slowdown in bookings growth also hit TUI shares at the time of the group's last earnings report in February. "We are clearly facing a slowdown in the level of demand (at TUI), notably in Germany," Fehmi Ben Naamane, an analyst at ODDO BHF, told Reuters. TUI also today reported an underlying loss before interest and taxes of €206.8m in the January-to-March quarter, wider than the €188.7m loss it reported a year ago but narrower than the €224m expected by analysts polled by LSEG. Ebel said on a media call that booking momentum had picked up since May 1 and summer bookings would likely be on par with last year. "You can lose in winter and win in summer," Ebel told reporters, adding that the second quarter was the least important quarter of the year. TUI has sought to diversify its income, expanding in Asia and central Europe, in an effort to bring in new streams of revenue as fears grow over European demand. Ebel said it will likely take three years for the benefits of that strategy to show up in the TUI balance sheet, but that the company had managed to avoid losses tied to the new projects. The group said its quarterly revenues slightly improved year-on-year to €3.71 billion from €3.65 billion in the same quarter last year.
