Tui Posts Over One Third Rise In PreTax Earnings Amid Challenging European Climate

Europe’s largest travel operator, Tui, has delivered stronger-than-anticipated profits and revenues despite facing a turbulent operating environment across the continent. The Frankfurt-listed giant, whose portfolio stretches across five European airlines, major hotel chains, travel agencies and cruise lines, announced third-quarter pre-tax earnings of €321 million—a surge of more than a third, topping prior market forecasts.

Revenue increased by 7 per cent to €6.2 billion, exceeding expectations. The performance was buoyed by higher average prices and enduring demand, with almost 6 million holidaymakers booking with the company from April to June. Chief executive Sebastien Ebel highlighted challenges faced by the company’s markets and airlines, which contended with broader economic difficulties, exceptional heatwaves during summer, and ongoing geopolitical strife such as the conflict in the Middle East.

This robust quarterly result comes as Tui continues to benefit from a renewed appetite for travel in the aftermath of the pandemic. Bookings for the crucial summer period are reported to be down 2 per cent compared to last year, while the average price paid per passenger has risen by 3 per cent. Early indicators for winter 2025-26 bookings, however, point towards positive momentum.

Investor confidence in Tui remains strong, evidenced by an 8 per cent jump in shares following the company’s upgrade to annual profit forecasts. Over the past year, the stock has climbed by over 50 per cent—this follows Tui’s decision to delist from the London Stock Exchange in favour of a primary listing in Germany.

The company now anticipates underlying annual earnings before interest and taxation to increase by 9 to 11 per cent, up from its prior forecast of 7 to 10 per cent growth. Revenue is expected to be at the lower end of a 5 to 10 per cent range. For context, Tui recorded earnings of approximately €1.3 billion on revenue of €23.2 billion last year.

Notably, Tui’s cruises division posted a record €143 million in underlying earnings for the third quarter, a substantial rise from €91 million during the same period last year. The hotels and resorts segment generated €131 million in operating profit, mirroring last year’s performance when adjusted for revaluation effects. Ebel attributed these results to the strength of the group’s integrated and diversified model, which has allowed it to mitigate the impact of seasonal fluctuations.