Tui Cuts Profit Expectations Amid Iran War and Last-Minute Travel

Tour operator Tui reports that its profits are being hindered by ongoing geopolitical tensions in Iran and a shifting consumer preference toward last-minute travel bookings. In Hanover, the company announced that booked revenue for package tours was five percent lower than the previous summer season. CEO Sebastian Ebel has revised his outlook for the fiscal year ending this September, predicting adjusted operating profit will fall to between 1.2 and 1.3 billion euros on a currency-adjusted basis, down from over 1.4 billion euros in the prior year. This decline reflects reduced travel offerings by five percent following disruptions caused when two Tui Cruises ships were stranded due to war in the Persian Gulf earlier this year.

The company noted that revenue from booked package tours remained six percent below last year's figures as of August, though recent weeks have shown some slowing in the rate of decline. Ebel stated there is no end in sight to this trend, citing continued early booking trends for the winter season driven by persistent geopolitical and economic uncertainty. Consequently, customers are delaying their vacation reservations compared to historical norms.

Despite these challenges, management maintains operational flexibility to adjust offerings according to short-notice demand. Although the 2025/26 fiscal year is nearly over, Ebel has not provided a specific revenue forecast due to the ongoing instability in Iran.