# Tui profits slump as Iran war hits holiday demand

By Dan Coatsworth — 2026-08-12

Dan Coatsworth, head of markets at AJ Bell, believes that a mixture of rising oil prices, high temperatures and recent wildfires at popular holiday destinations have caused anxiety for consumers.

He said: “Softer demand and higher fuel costs have clouded the situation for Tui.

“The failure of US-Iran peace talks to end the Middle East conflict has thrown a spanner in the works for the travel industry, and operators are having to take it one day at a time.

“In July it looked as if the Iran war was on the cusp of ending, and oil prices had fallen back to pre-conflict levels. That gave hope to airlines and holiday companies that the summer season wouldn’t be a write-off. Worries about potential fuel shortages down the line started to fade, and travel bookings picked up.

“Unfortunately, tensions have once again become elevated in the Middle East. That’s led to a rebound in oil prices. High temperatures across major holiday destinations and wildfires have made matters worse and caused anxiety among holidaymakers.

“Tui is keeping its chin up, saying people are still travelling – they’re just booking at the last minute. Investors aren’t buying into management’s confidence, with the shares falling on the latest results.”

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