TUI to post bigger loss than forecast predicts Deutsche Bank



TUI AG (LSE:TUI) has had its price target chopped to 335p from 410p by Deutsche Bank (NYSE:DB), which sees little evidence of a recovery coming through quickly at the travel operator.

After talking with the company, DB said it has lowered its estimate for Q4’21 business levels and trimmed future years.

TUI guided to Q4 capacity at around 60% of pre-crisis levels, against the 70-75% indicated a quarter earlier, highlighting a slower recovery and the uncertainty brought about by the Delta variant.

Revenues for the year are expected to be EUR5.2bn, against EUR8.7bn earlier, implying a drop in the fourth quarter of 49% relative to pre-crisis – similar to TUI indicating volumes down 56% and price up 6%.

Underlying losses for 2021 are now forecast at EUR2.05bn, against EUR1,44bn implying a fourth-quarter deficit of EUR70mln.

Shares eased 1.4% to 302.3p.


Please enter your comment!
Please enter your name here