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-2.8% 6,550
IAG (BRITISH AIRWAYS) TUI -2.4%£5.43
13%£11.81
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Tui on track despite Tunisia beach attack
TUI GROUP’S joint chief executive Peter Long has said he still expects the company to report a growth in annual profits, despite anticipating a loss of up to €40m as a result of the Tunisia terrorist attack. The mass shooting at the end of
June saw 33 Tui customers killed – 30 of them British – on a beach near the resort of Sousse. The company launched a massive airlift operation
to bring home customers still in Tunisia and subsequently cancelled all holidays to the country. A large proportion of the financial
impact of the tragedy is expected to come from the cost of running under-occupied hotels in Tunisia, with an estimated figure of €35-€40m. This amount includes around €10m of repatriation costs, which were announced in the group’s third-
quarter results last week. “Despite this impact we
have tightened our guidance to 12.5-15% [profit growth] so effectively what we’re saying is we are absorbing the impact of this cost,” he said on a conference call. Long added that Tui
IHG -3.2%£25.08
would continue to rely on government advice in relation to Tunisia, but that it would think carefully before deciding whether to send customers back to the country. “We are continuing to remain in dialogue with the Tunisian authorities to understand what they are doing and as the situation improves that will make us feel better, but ultimately we will not make a decision regarding the
recommencing of our Long: remains confident
programmes until the Foreign Office advice is lifted and they are saying it is safe to travel again.
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20.08.2015
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