German-based tourism and shipping company TUI AG said Thursday that it lost €55.6 million (US$82.9 million) in the second quarter because of costs from the realignment of its charter air travel operations.
The loss compared with a profit of €58.9 million (US$87.8 million) a year earlier and was compounded by the rising euro and currency fluctuations on a sale-and-lease-back agreement on 19 planes worth US$526 million (€352.9 million). Those exchange rate fluctuations led to a charge of €102 million (US$152 million).
Despite the setback, overall sales rose 27 percent to €4.5 billion (US$6.7 billion) compared with €3.5 billion last year, due in part to the consolidation of TUI's First Choice brand and rising demand for charter holidays, particularly in the German market.
The Hannover-based company's container-based shipping operations, Hapag-Lloyd, which it plans to spin off, reported a 7 percent rise in sales to €1.5 billion (US$2.2 billion) compared with €1.4 billion last year. TUI said that increased freight rate levels and volume growth helped push the figure higher, but said the weak dollar helped offset the gains.
Shares of TUI were up less than one-tenth of a percent to €14.50 (US$21.61) in Frankfurt trading.
The loss compared with a profit of €58.9 million (US$87.8 million) a year earlier and was compounded by the rising euro and currency fluctuations on a sale-and-lease-back agreement on 19 planes worth US$526 million (€352.9 million). Those exchange rate fluctuations led to a charge of €102 million (US$152 million).
Despite the setback, overall sales rose 27 percent to €4.5 billion (US$6.7 billion) compared with €3.5 billion last year, due in part to the consolidation of TUI's First Choice brand and rising demand for charter holidays, particularly in the German market.
The Hannover-based company's container-based shipping operations, Hapag-Lloyd, which it plans to spin off, reported a 7 percent rise in sales to €1.5 billion (US$2.2 billion) compared with €1.4 billion last year. TUI said that increased freight rate levels and volume growth helped push the figure higher, but said the weak dollar helped offset the gains.
Shares of TUI were up less than one-tenth of a percent to €14.50 (US$21.61) in Frankfurt trading.