TUI sees losses more than double after heatwave hit

Holiday giant Tui has blamed last year’s “unusually long and hot summer” and the weak pound as first-quarter losses more than doubled.

The group - which last week sent shares tumbling after warning over full-year profits - reported seasonal underlying losses of f83.6 million (£73.3m) for the three months to December 31 against losses of f36.7m (£32.2m) a year earlier.

It said results were impacted by last year’s prolonged hot weather across northern Europe, combined with the Brexit-hit pound and overcapacity in western Mediterranean destinations, such as the Canary Islands.

The group said summer 2019 bookings were “broadly” in line with a year earlier and holiday prices had held firm, but cautioned its profit margins were taking a hit.

“The market environment for all tour operators remains challenging,” it added.

Shares fell 5%, having tanked last week when Tui warned underlying earnings for the year to September 30 were expected to come in flat at around f1.17 billion (£1bn).

This compares with previous guidance for at least 10% growth in earnings.