TUI Misses Quarterly Profit Forecast as Bookings and Revenue Drop
Financial Performance and Market Impact
Quarterly Results Overview
London, August 12 - Europe's largest travel company TUI third-quarter operating profit missed expectations on Wednesday, as bookings fell and the price of jet fuel remained high due to the U.S. war with Iran.
TUI reported an operating profit of €234.6 million ($270.6 million), down almost 27% from last year and lower than the €274 million projected by analysts polled by LSEG.
Industry-Wide Booking Trends
Europe's airlines and travel companies have warned of shortened booking windows as tourists hesitate to book their holidays given ongoing uncertainty tied to the Iran war.
Airline Responses and Capacity Adjustments
Major carriers like IAG, Lufthansa and Air France-KLM said they were either cutting capacity or keeping it flat for the year to come in an effort to mitigate a broader fallout on their bottom line.
TUI's Strategic Outlook
"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 decisions has shifted," said Chief Executive Sebastian Ebel in a statement.
Profit Forecast and Guidance
The German firm confirmed its operating profit outlook of an adjusted operating profit of €1.1 billion to €1.4 billion for the 2026 financial year, but said its third quarter was characterised by ongoing geopolitical uncertainties, weakness in European markets and customer caution.
TUI had cut its profit forecast and suspended its revenue guidance in March on the back of spiralling jet fuel costs and the uncertainty surrounding the Iran war.
Additional Information
($1 = 0.8671 euros)
(Reporting by Joanna Plucinska and Paolo Laudani; Editing by Milla Nissi-Prussak and Harikrishnan Nair)
