Source - SMW
Travel company TUI booked a deeper second-quarter loss owing to a more subdued travel market pestered by Brexit uncertainty.

Net losses for the three months through March amounted to €175.1m, compared to losses of €142.3m on-year.

For the first half, net losses deepened to €287.2m, compared to losses of €210.6m on-year.

The underlying Ebitda loss for the first half was €301m, compared to a loss of €170m on-year.

TUI said a weak result in its airlines and markets division reflected Brexit uncertainty, the knock-on impact of the summer 2018 heatwave and overcapacities in Spain.

The loss also included the initial impact from the grounding of Boeing's 737 MAX aircraft.

For summer 2019, 59% of the total programme had been sold compared with 62% at the same time last year.

Bookings were down 3 %, with average selling price up 1% against strong comparatives.

'The competitive pricing environment means that this average selling price increase is not at a sufficient level to cover cost inflation,' TUI said.

'All markets are trading on lower margins then prior year, given the weaker demand environment and oversupply to some destinations such as Spain.'

'We have taken a disciplined approach to capacity, which is flat compared with prior year, at the same time enabling us to protect our strong market leading positions.'