logo-loader
viewTUI AG

TUI adds 2mln more summer holiday seats as Thomas Cook collapse boosts demand

Tui’s in-house airline also said it will create jobs for more than 100 pilots and over 200 cabin crew, with many to be recruited from its former competitor Thomas Cook

TUI AG - Tui’s in-house airline also said it will create jobs for more than 100 pilots and over 200 cabin crew, with many to be recruited from its former competitor.

Shares in TUI AG (LON:TUI) soared after news broke on Friday morning that the travel operator plans to add 2mln seats on its flights next summer.

The news follows the collapse of rival travel company Thomas Cook in September, which left behind 22mln former customers and a £10bn gap in the market.

READ: Thomas Cook: who will be the winners and losers?

Analysts at Shore Capital said that with an estimated margin of €40 per passenger, two million additional seats “could provide an incremental €80-90m to TUI’s bottom line”, which could also create a “halo effect” for the group’s hotels.

The extra seats will be added across flights to Turkey, Greece, Balearics, Canaries, Egypt, Mexico and Florida. 

Tui’s in-house airline also said it will create jobs for more than 100 pilots and over 200 cabin crew, with many to be recruited from its former competitor.

Shore Capital called Thomas Cook’s downfall a “game changer for incumbent operators”, and also noted Jet2 airline owner Dart Group’s recent reports of higher demand.

Shares were nudged up 5% to 963.4p in early trading on Friday, slightly below last month’s high of 974.2p.

Quick facts: TUI AG

Price: 730.2 GBX

LSE:TUI
Market: LSE
Market Cap: £4.3 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Alto Capital’s Tony Locantro covers the latest issues affecting the stock...

Bulls, Bears & Brokers: Alto Capital’s Tony Locantro speaks to Proactive about the desires of the modern consumer, the current ‘less is more’ economy and the impacts of the Coronavirus.  Locantro said the consumer rush of buying products is over.  "The whole mind-set of...

1 hour, 50 minutes ago

2 min read