TUI to become more ‘cost competitive’ in wake of Thomas Cook collapse

Holiday operator TUI has announced plans to extend its market share a day after the collapse of rival firm Thomas Cook.

In a trading update ahead of reporting its full year results later this year, the firm has announced that it will become more ‘cost competitive’ to counter market uncertainty.

Chief executive of TUI Group, Friedrich Joussen, explained: “Our vertically integrated business model proves to be resilient, even in this challenging market environment. Our Holiday Experiences business continues to deliver strong results.

“Meanwhile, our Markets & Airlines business faces a number of ongoing external challenges such as the grounding of the 737 MAX aircraft, airline overcapacities and continued Brexit uncertainty.

“These external challenges will continue in FY20 - therefore, we will focus on becoming more cost competitive in our Markets & Airlines business to protect and extend our market share where possible.”

The news comes a day after the collapse of 178-year-old travel company Thomas Cook, which has resulted 21,000 job losses and left around 150,000 holidaymakers stranded at various global destinations.

Commenting on the collapse of the rival firm, Friedrich added: “TUI customers are booked on Thomas Cook Airlines flights and these are no longer operated, replacement flights will be offered.

“We are currently assessing the short term impact of Thomas Cook’s insolvency under the current circumstances, on the final week of our FY19 financial result.”