The Tui Group plans to realign its airlines to increase the division's profitability. While the group's airlines will continue to contribute to the occupancy of Tui hotels, they will generate more profits as independent business units in the future. David Ciomperlik, Head of the Tui Airline Division, explained this to analysts at the Capital Markets Day in Madrid.
The group currently operates 106 short- and medium-haul aircraft and 19 long-haul aircraft. This makes Tui one of the ten largest airlines in Europe. Its stated goal is to become the market leader in the leisure carrier segment—airlines that focus on vacation travel.
A central element of the new strategy is the expansion of the single-seat business. In the future, individual airline 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 TUI Airlines will also be expanded.
To increase efficiency, TUI plans to further standardize operations across the group's various airlines. This includes the introduction of a common website that 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.
In terms of its fleet strategy, TUI remains exclusively focused on aircraft manufacturer Boeing. However, given Boeing's current supply problems, the procurement strategy will be regularly adjusted to ensure the demand for new aircraft.
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