Customer demand for travel remains strong: TUI publishes Q4 pre-close trading update and confirms earnings expectation for FY23.

Confirmation of expectations for a strong Summer 2023 with bookings in final month of season well ahead of Summer 2022. We are pleased to see the positive momentum continuing into Winter 2023/24 supported by higher prices. TUI is well positioned to achieve the results target for FY 2023.

• Current booking trends underlining the strong consumer demand in the current macro-economic environment and the popularity of our product offering

SUMMER 2023

• Strong pipeline of 13.7m¹ bookings for the Summer 2023 season, a +5% increase against prior season and close to pre-pandemic levels at 96%
• 1.1m additional bookings taken since our Q3 2023 update with demand in the final month of season well ahead of Summer 2022 at +8%
• Season extension in particular in Greece and Turkey to accommodate increased demand
• ASP for Summer 2023 continues to be well ahead at +8% versus prior season and +27% versus Summer 2019, slightly ahead of the levels reported at Q3

WINTER 2023/24

• Positive momentum continuing into Winter 2023/24 with an expanded programme and overall bookings up +15% against Winter 2022/23. Promising booking situation across all key source markets supported by higher prices +4% versus prior season. We are hedged for the coming Winter and Summer season in line with our expectations
• UK, as usual, with 38% of the season sold, is the most advanced booked on a larger programme. Bookings are at +8% and ASP +3% against Winter 2022/23
• Holiday Experiences trading remains well on track to deliver in line with expectations both for Summer 2023 and Winter 2023/24

EXPECTATIONS

• TUI reconfirms expectations to increase underlying EBIT² significantly for both Q4 2023 and also for FY 2023 against FY 2022TUI Group
• Q4 underlying EBIT FY 2023² expected to increase significantly against prior year – Hotels & Resorts anticipated to be close to an already strong prior year. Both Cruises and Markets & Airlines set to achieve a significantly improved result with a strong increase in results expected for TUI Musement
• FY 2023 Assumption² – we reconfirm our expectations to increase underlying EBIT significantly for  FY 2023
• Mid-term ambitions – we are focused on operational excellence and execution of our strategy. We have a clear strategy to accelerate profitable growth with new customer segments and more product sales. Our mid-term 2025/26 ambitions are for underlying EBIT to significantly build on €1.2bn³. We have a target to return to a gross leverage ratio⁴ of well below 3.0x and aim to return to a credit rating in line with the pre-pandemic rating of BB / Ba territory
• We will issue the TUI Group Full Year results on Wednesday 6 December 2023 and hold a presentation for investors and analysts in London on the same day. Further details will follow

¹ Bookings up to 10 September 2023 and relate to all customers whether risk or non-risk
² Based on constant currency
³ FY 2019 underlying EBIT of €893m including €293m Boeing MAX cost impact
⁴ Defined as gross debt (financial liabilities incl. lease liabilities & net pension obligations) divided by underlying EBITDA