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MADRID, June 10 (Reuters) – Spanish hotel chain Melia expects to return to profitability in June following 15 months in the crimson, Chief Executive Gabriel Escarrer explained on Thursday at the yearly shareholders assembly.
The company will possible report good earnings just before interest, taxes, depreciation and amortization in June and a positive in general cashflow in July, Escarrer informed shareholders.
Mallorca-based Melia has booked 5 consecutive quarters of internet losses since the coronavirus pandemic struck, paralysing world vacation and using a heavy toll on the hotel sector.
But Escarrer pointed to a recovery in worldwide air targeted visitors, soaring reservations in Spain and encouraging need from Germany and France as sources of optimism for a solid next half of the 12 months.
“I’m absolutely sure that these ‘green shoots’ in tourism need herald a restoration that has already begun in the holiday sector … and which will lengthen out into other segments in the medium phrase,” he stated.
Company travel must commence to decide on up to the end of the calendar year, with various corporate gatherings scheduled in the last quarter, he additional.
Foreign tourism to Spain crashed 80% past 12 months, forcing the closure of numerous lodges and drawing the eyes of worldwide buyers.
Recent knowledge counsel a nascent recovery is underway, nevertheless arrivals continue being much underneath 2019’s amounts.
The federal government predicts vacationer quantities could access 30%-40% of their pre-pandemic stages in summer season, increasing to up to 70% by the conclude of the year. (Reporting by Inti Landauro and Nathan Allen Modifying by Mark Potter)