Liz Truss’s brief time in office wreaked havoc in financial markets (Credit: parliament.uk)
Tui made an underlying profit of €6 million in the last three months of 2023, its first quarter – the first time it has ever recorded a Q1 profit. The figure contrasts with a loss of €153 million in the same period in 2022, which followed Truss’s 44 days in office.
Truss was prime minister in September and October 2022, during which the pound crashed to a 37-year low when markets were spooked by a plan to increase borrowing by £70 billion.
Mathias Kiep, Tui Group chief finance officer, admitted latest Q1 figures were in part flattered by favourable currency movements, which contrasted with the previous Q1.
“We had the Liz Truss government in the UK with the impact on the pound. This was primarily happening in Q1,” he said during a Q1 results call on Tuesday (13 February).
A Tui spokesperson added: “At the time when the pound weakened, we were not sufficiently hedged against it. This year we expect to generate €100 million in hedging benefits.”