Germany’s TUI narrowed its outlook for 2026 underlying operating earnings today, saying war in the Middle East meant customers were making later bookings, although demand was strong into the fourth quarter.
TUI is Europe’s largest tour operator.
Jet fuel prices have surged as a result of the disruption linked to the US-Israeli war on Iran and airlines have struggled to pass on increased costs, while customers are more hesitant about making travel plans.
“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.
Analysts pointed to increased forward bookings in recent weeks.
Booked capacity for the core markets in Germany and Britain was up 1% since TUI’s last results report on August 12, although overall reservations across segments were down compared to last year, according to the results.
TUI, which runs cruise ships, airlines and hotels, cut its profit forecast and suspended its revenue guidance in March in response to the impact of the Iran war, which began at the end of February.
The travel group expects annual underlying earnings before interest and taxes to reach between €1.2 billion and €1.3 billion, instead of the previously forecast €1.1 billion to €1.4 billion.
It said its cost-cutting and efficiency initiatives had strengthened its position and in some cases, it had limited the number of flights available.
It also published details of its jet fuel hedging that is designed to stabilise costs associated with the spike in prices.
The company will report its full-year results for 2026 on December 9.
