LONDON (Reuters): TUI, Europe’s largest travel company, reported third-quarter earnings below analysts’ expectations on Wednesday as weaker holiday bookings and elevated jet fuel costs weighed on profitability.
The company posted an operating profit of €234.6 million ($270.6 million) for the quarter, falling short of the €274 million forecast by analysts surveyed by LSEG.
The result also marked a 26.8% decline from the €320.6 million operating profit recorded during the same period last year, reflecting the impact of softer consumer demand and higher operating expenses.
TUI said travellers had become more cautious about booking holidays as geopolitical uncertainty continued to affect consumer confidence, while higher fuel prices increased airline operating costs.
What Is TUI’s Outlook for the Rest of the Year?
Despite the weaker quarterly performance, TUI reaffirmed its full-year operating profit guidance, indicating that it still expects to meet its earnings targets for 2026.
The company said the third quarter was shaped by ongoing geopolitical tensions, weakness in European travel markets, and more cautious customer spending, all of which affected booking patterns during the peak summer season.
TUI also highlighted the impact of persistently high jet fuel prices, driven by instability in global energy markets following the conflict involving the United States and Iran.
While maintaining its annual outlook, the company acknowledged that uncertainty surrounding international travel demand and fuel costs remains a significant challenge for the tourism industry.
As Europe’s largest integrated tourism group, TUI’s financial results are widely regarded as an important indicator of consumer travel demand and broader trends in the European tourism sector.