# Tui says summer bookings down as Iran war and Jamaica hurricanes hurt profits

By Aarin Chiekrie — 2026-05-13

Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said: “TUI’s second-quarter results were a mixed bag following the suspension of its full-year revenue guidance and profit downgrade last month.

“Revenue was broadly stable year-on-year, reflecting relatively robust demand across its segments as customer numbers rose two per cent to 5.6 million.

“But operating profit performance was mixed across its segments, as the Middle East conflict brought additional challenges and costs in the period.

“Its Cruise and Markets & Airline (M+A) segments were hardest hit by the disruption.

“However, thanks to cost savings in M+A as part of its strategic transformation, the segment still saw its profitability improve over the period.

“Looking to the rest of the year, consumers have understandably become more cautious about splashing out on a holiday, and summer bookings are down seven per cent.

“Despite this, it doesn’t appear that holidaymakers are abandoning their vacation plans completely.

“Recent data suggests they’re simply leaving it until later to book. And while that’s not ideal, it’s better than complete demand destruction.

“TUI’s strategic moves in recent years, like rebalancing its guaranteed capacity with capacity it can top up from third parties, mean the financial damage from the Middle East conflict isn’t as bad as it could have been.

“A huge amount of work has also been done to strengthen the balance sheet, which now provides good wiggle room to navigate the current market challenges.

“All in, there was no change to its wide full-year underlying operating profit guidance, which points to profits ranging from flat to a decline of up to 22 per cent.

“Markets are currently sitting on the more optimistic end of this range, but much will depend on how the conflict plays out.”

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