While tourists in southern Gran Canaria wonder if their flight will arrive on time and local operators pray for a miracle of occupancy, TUI has decided not to roll the dice: €250 million to pay off its aircraft leases early. No more waiting around, no more depending on third parties; now its planes are as much its own as the sand in Maspalomas.
Mathias Kiep, the airline's financial director, explains it with the calm of a surgeon: the money isn't diluted in loans or interest; it buys assets, reduces risks, and improves cash flow. In other words, while the hotels in southern Gran Canaria depend on the fortunes of summer tourism, TUI is securing its skies and, in turn, its margins.
The numbers don't lie: 5,9 million passengers carried in the third quarter of 2019, an average occupancy rate of 94%, and an adjusted operating profit that soared to 50 million compared to 17 million the previous year. Even with a 2% drop in bookings, the airline increased its average price by 3%. The lesson is clear: controlling your assets is more profitable than waiting for tourists to arrive.
And while southern Gran Canaria struggles with hotel renovations and overcrowded parking, TUI is transforming contracts into tangible assets, freeing up capital to maneuver through any economic storm. It's the art of foresight: others are praying for British tourists, TUI has already cashed in its first-class ticket. The message, for both investors and local business owners: whoever controls their contracts controls their destiny. And if the skies cloud over the Canary Islands, those who know how to emulate TUI's strategy will continue to soar. The rest... just wait for the next delayed flight.
