TUI, Europe's largest tour company, has today posted a slightly narrower-than-expected second-quarter adjusted operating loss, with strong demand for cruise trips and the company streamlining its airline business.
The German travel major reported a loss of €188m for the quarter ended on March 31, 9% lower than a year earlier, despite a €40m hit from the Iran war that forced flight cancellations and ship rerouting. Analysts polled by LSEG had projected a loss of €194m.
Airlines across the industry have warned of the knock-on effect of the war that began on February 28, while tourists have started booking trips closer to home and more last-minute in order to avoid disruption.
TUI highlighted the last-minute booking trend tied to the war in its results, adding that tourists were shifting away from holidays in the eastern Mediterranean towards the western Mediterranean.
Bookings for the second half of the year were strong, the company said, adding that higher prices were set to bolster the company's revenues.
"The very strong results give us confidence for the second half of the year. Due to geopolitical challenges and dynamic operating conditions, this will require great dedication and flexibility," chief executive Sebastian Ebel said in a statement.
He added that the airline would continue to focus on diversifying its product offering to stay resilient.
The company confirmed its April outlook of an adjusted operating profit of €1.1 billion to €1.4 billion for the 2026 financial year.
Second-quarter revenues were similar to last year at around €3.7 billion.
In April, TUI cut its profit forecast and suspended its revenue guidance for the upcoming fiscal year on the back of spiralling jet fuel costs and the uncertainty surrounding the war in the Middle East.
