
Tui wants to make airlines more profitable and expand single-seat business
The Tui Group is planning a realignment of its airlines to increase the division's profitability. While the group's airlines will continue to contribute to the occupancy of Tui hotels, they are to generate more profits as independent business units in the future. This was explained by David Ciomperlik, head of the Tui airline division, to analysts at the Capital Markets Day in Madrid. The group currently operates 106 short- and medium-haul aircraft and 19 long-haul aircraft, making Tui one of the ten largest airlines in Europe. The stated goal is to become the market leader in the so-called "leisure carrier" sector - airlines that focus on holiday travel. A central element of the new strategy is the expansion of the single-seat business. In the future, individual flight tickets will increasingly be sold independently of package tours. This will primarily be achieved through partnerships with other companies (B2B business). Connections from holiday destinations to the home markets of the Tui airlines are also to be expanded. To increase efficiency, TUI plans to further standardize its operations across the Group's various airlines. This includes the introduction of a common website, which will not only facilitate the sale of ancillary services but also optimize capacity utilization on long-haul flights from multiple source markets. Furthermore, the division of labor within the fleet will be improved to better balance seasonal fluctuations and ensure year-round capacity utilization. TUI's fleet strategy will continue to focus exclusively on aircraft manufacturer Boeing. However, in light of current delivery problems at Boeing, the procurement strategy will be regularly adjusted to ensure the demand for new aircraft.