TUI has issued an update for travellers with holidays booked, addressing concerns over jet fuel supplies amid the ongoing Middle East conflict. As the company announced its latest financial results, it told travellers that Europe is now sourcing more oil from other regions, including Africa, as the Strait of Hormuz remains closed due to the Iran war.
Financial Impact and Bookings
Europe’s largest travel operator is one of several firms impacted by the conflict that began at the end of February. TUI reported that booked revenues for summer were down 7% compared with 2025 for its tours and airline, with the UK market alone experiencing a 10% decline. However, the company remains optimistic about its performance.
Fuel Supply Assurance
TUI Chief Financial Officer Mathias Kiep told The Independent: “I’m very much convinced that we will see no shortage in the next 10 weeks. There’s definitely enough fuel.” He added that the discussion on fuel is “a little bit artificial” as no shortages are foreseen. “We would also see no impact in the summer at all except prices – and for the higher prices we are luckily hedged.” Kiep noted that Europe is now receiving more oil from countries like Nigeria, as increased prices have made production there profitable. He also pointed to lower consumption and higher refinery capacity, suggesting that even a prolonged closure of the Strait of Hormuz would not lead to shortages.
Shift in Travel Demand
The US and Israel’s war with Iran has shifted demand from eastern to western Mediterranean destinations, with customers showing greater caution and booking closer to departure dates. TUI expects Spain, including the Balearics and Canary Islands, and Greece to be top summer destinations.
Direct Message to Passengers
Last week, TUI Managing Director Neil Swanson addressed passengers directly, promising that May half-term flights would proceed as scheduled: “We know you may be feeling a little uneasy after recent headlines, and we want to reassure anyone travelling over May half-term that they can look forward to their holiday with confidence with TUI. We have good visibility on fuel supplies and are operating our holiday programme as planned, with no flights being cancelled due to fuel shortages.” He emphasised that TUI is not adding fuel surcharges, and all package holidays are ABTA and ATOL protected.
Financial Results and Challenges
TUI reported an underlying loss before interest and tax of 111 million euros (£96 million) for the first half, an improvement from the 156 million euro (£135 million) loss a year earlier. The company is on track for a full-year operating profit of 1.1 to 1.4 billion euros, down from previous targets of 1.5 to 1.6 billion euros. CEO Sebastian Ebel said: “The very strong results give us confidence for the second half of the year. Due to geopolitical challenges and dynamic market conditions, it will require great dedication and flexibility.”
Impact of Iran War and Hurricanes
The Iran war cost TUI around 40 million euros (£34.7 million) after it repatriated about 5,000 passengers from two cruise ships in Abu Dhabi. The ships have since departed safely during a pause in hostilities and will begin Mediterranean summer itineraries from mid-May. Additionally, hurricanes in Jamaica last October cost the company roughly 21 million euros (£18 million).
Package Holidays Gaining Popularity
According to Jet2, package holidays are now the preferred choice for 51% of customers, a 5% increase since February. The proportion booking through multiple providers has fallen to 20%, while ‘accommodation only’ bookings have dropped to just 2%. Value for money (36%) and convenience (36%) remain top motivations, with 26% citing added security from ATOL/ABTA protection. Jet2 has pledged not to impose fuel surcharges on confirmed bookings. CEO Steve Heapy said: “Consumers want assurance during times of uncertainty and package holidays provide that assurance.”
