TUI Revises 2026 Operating Profit Outlook as Late Bookings Persist
TUI's Financial Forecast and Market Challenges
Revised Outlook for 2026
Sept 22 (Reuters) - Germany's TUI narrowed its outlook for 2026 underlying operating earnings on Tuesday, saying consumers continued to book holidays later due to regional conflict, but demand remained strong into the fourth quarter.
Industry-Wide Profit Pressures
Impact of Jet Fuel Prices and Geopolitical Uncertainty
Airlines have struggled to increase profits as jet fuel prices have spiralled and consumers concerned about escalating conflict have delayed or stopped booking their holidays.
Booking Trends and Company Statement
"Early indications for the new winter season point to a continuation of the later booking environment against the backdrop of ongoing geopolitical and economic uncertainty," the company said in a statement.
TUI's Strategic Adjustments
Profit Forecast and Revenue Guidance
Europe's largest tour operator TUI, which runs cruise ships, airlines and hotels, cut its profit forecast and suspended its revenue guidance in March due to surging jet fuel costs and the uncertainty surrounding the Iran war.
Updated Earnings Expectations
Annual Underlying Earnings Before Interest and Taxes
The travel group now expects annual underlying earnings before interest and taxes to reach between €1.2 billion and €1.3 billion ($1.4 billion and $1.5 billion), instead of the previously forecast €1.1 billion to €1.4 billion.
Currency Exchange Rate
($1 = 0.8722 euros)
Reporting Credits
(Reporting by Tristan Veyet in Gdansk and Joanna Plucinska in London, editing by Milla Nissi-Prussak and Louise Heavens)
