Sept 22 (Reuters) – Germany’s TUI narrowed its outlook for 2026 underlying operating earnings on Tuesday, saying consumers continued to book holidays later due to regional conflict, but demand remained strong into the fourth quarter.
Airlines have struggled to increase profits as jet fuel prices have spiralled and consumers concerned about escalating conflict have delayed or stopped booking their holidays.
“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.
Europe’s largest tour operator TUI, which runs cruise ships, airlines and hotels, cut its profit forecast and suspended its revenue guidance in March due to surging jet fuel costs and the uncertainty surrounding the Iran war.
The travel group now expects annual underlying earnings before interest and taxes to reach between €1.2 billion and €1.3 billion ($1.4 billion and $1.5 billion), instead of the previously forecast €1.1 billion to €1.4 billion.
($1 = 0.8722 euros)
(Reporting by Tristan Veyet in Gdansk and Joanna Plucinska in London, editing by Milla Nissi-Prussak and Louise Heavens)
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