Kuoni reports profit boost but remains cautious for 2011

Kuoni reports profit boost but remains cautious for 2011

Kuoni reported an increase in profits today but warned that it was uncertain about the year ahead as it counts to cost of the slow economic growth, Middle East protests and Japan earthquake. The group has seen its net profit jump from CHF 1.6 million to CHF 23.2 million, with turnover increasing 2.3 percent to almost CHF 4 million. But forward bookings across the group have dropped seven percent compared to the same period last year, which Kuoni has attributed to local currency rates. “Political turmoil, particularly in the North African tourist destinations of Egypt and Tunisia, led to a temporary suspension of all holidays to these countries in February 2011. Cancellations were only partially offset by rebookings, so booking volumes are down, said Peter Rothwell, CEO of the Kuoni Group. However, our flexible business model allows us to adjust our offerings to other holiday regions. The sharp depreciation of the euro against the Swiss franc is also hurting bookings figures.” He added that it was difficult to tell what would happen in 2011. Scandinavia and Asia were the best performing regions for the tour operator.

Mark Elliott
Written by:
Mark Elliott
Posted On:
Posted In: