Tui has seen quarterly earnings plunge as cautious consumers continue to leave holiday bookings until the last minute amid uncertainty over the Iran war.
Sharp Profit Decline
Pre-tax profits at Europe’s largest travel operator tumbled 43% to 153.4 million euro (£131 million) in its third quarter to the end of June, with the group hit by rising fuel costs due to the Middle East conflict and pressure to lower prices because of weak demand and increased competition.
Underlying earnings fell 27% in the latest quarter to 233.8 million euro (£199.7 million) as it said customer numbers fell 3% to 9.9 million.
Impact of Conflict and Hurricanes
Tui revealed it suffered a hit of 81 million euro (£69.2 million) in the nine months of its financial year so far from the Iran war and hurricanes in Jamaica, including an extra 20 million euro (£17.1 million) “direct” impact from the Middle East conflict on its cruises arm during the third quarter.
In March, the firm was forced to repatriate around 5,000 passengers from two cruise ships anchored in Abu Dhabi, which remained in the Gulf ports until mid-May.
CEO Comments
Sebastian Ebel, chief executive of Tui, said the group has weathered the tough trading conditions, but that holidaymakers are increasingly booking trips later towards their departure date.
He said: “2026 is no ordinary year. Tui has held its own well in a difficult global environment. Our business model is proving to be resilient. Travel remains highly relevant to people’s lives, but the timing of travel decision has shifted.”
Mr Ebel added: “Wars and geopolitical tensions, consumer caution, economic weakness and rising inflation in Europe’s core markets – all these factors have influenced consumer sentiment and the timing of purchasing decisions.”
