TUI beats quarterly earnings forecast as new strategy 'paying off'
European airlines broadly performed well during the second quarter as concerns about a dip in travel demand appeared to have had a limited impact on results.
TUI reported underlying earnings before interest and tax (EBIT) of €321m in its quarter ended June 30, compared with the €269m expected by analysts polled by LSEG, and up 38% on the previous year.
Revenue in TUI's third quarter across all segments stood at €6.2 billion, gaining 7%.
The group raised its full-year profit guidance yesterday, after strong hotel and cruise demand boosted the business so far this year, sending shares up.
"The third quarter and the first nine months of the financial year 2025 were strong. Our strategy is paying off," Ebel said in a statement today.
The company acknowledged that the environment for its airlines business remained difficult.
In the previous quarter, TUI had flagged a slight drop in summer bookings, amid concerns that inflation and macroeconomic worries could weigh on consumer appetite for travel.
While there was a 2% decline in summer bookings tied to the Middle East conflict, ticket prices were up 3%, helping to balance out higher costs, according to a media presentation.
European travellers, making up the core base of TUI's customers, tend to be more price-sensitive than North American travellers.
German bookings were also down 5% due to hot weather, Ebel told reporters on a media call, but added that he expected more customers in the autumn.
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