TUI to cut capacity by 15% next summer; ground planes
18.08.08
TUI Travel is to cut summer 2009 capacity in the UK by 15%, after cutting it by 13% this summer and by 21% for the coming winter. The holiday company is to take 6 aircraft out of the flying programme for the winter and 11 out next summer. The deep cuts are being made despite the merged TUI / First Choice describing early sales for next summer as ‘starting positively’ with prices up by 12%.
Chief executive Peter Long said: ‘While the evidence to date suggests that consumers view holiday spending as a high priority, we continue to prepare our business to deal with the consequences of the current economic climate. Accordingly, we are taking out capacity for the coming seasons where it makes sense to do so and retain significant flexibility to adjust supply further if demand changes.’
He added that the company was seeing no evidence to suggest that demand is slowing for any seasons on sale. This reflected a similar message from Thomas Cook last week. Trading for all seasons, particularly in the UK, continues to be buoyant despite the ‘challenging’ economic conditions'.
The average selling price for winter 2008-09 is up by 13%, with sales up by 2% based on capacity reduced by 21%. The UK summer 2009 programme is 7% sold, in line with the previous year, with average selling prices of charter-based holidays up by 12%.
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