Finance
TUI aims for 3% profit margin for its airline business in medium term
Published by Global Banking & Finance Review®
Posted on March 25, 2025
2 min readLast updated: January 24, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on March 25, 2025
2 min readLast updated: January 24, 2026
TUI aims to raise its airline profit margin to over 3% by expanding its product offerings and customer base, including new cruise ships and international destinations.
By Joanna Plucinska and Ilona Wissenbach
LONDON (Reuters) -Europe's largest tour operator TUI aims to raise the profit margin for its markets and airline unit to more than 3% in the medium term, it said on Tuesday, compared to a margin of 1.5% in 2024.
Last month, weak results and sluggish bookings data raised concerns about slowing European demand, knocking TUI shares. Since then, the company has been trying to expand its customer reach and boost growth.
On Tuesday, TUI said it would sell more seat-only flights and offer more products targeting businesses to make its traditional holiday package business more flexible.
"The goal is to...offer customers more products and significantly increase the number of customer contacts throughout the year," Chief Executive Sebastian Ebel said in a statement ahead of a capital markets day event in Madrid.
He said the aim was to "up-sell and cross-sell" across products, for example, by persuading customers buying a hotel room to include other products as well, like a car rental or flight.
Ebel told journalists in February that TUI wanted to expand beyond its packaged-holiday business, and include amusement and experience packages via an app.
It plans to boost its offers to more international destinations and court non-European customers.
TUI said on Tuesday it may renew some of its Marella cruise ship fleet to target the British market, and was in talks over building two new ships to be available by 2031.
(Reporting by Joanna Plucinska and Ilona Wissenbach; Editing by Kirsten Donovan and Bernadette Baum)
The article discusses TUI's goal to increase its airline business profit margin to over 3%.
TUI plans to sell more seat-only flights and offer flexible holiday packages.
TUI is considering renewing its Marella cruise ships and building new ones for the UK market.
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