TUI’s second-quarter underlying operating losses are expected to have improved by between €5-25mn, compared to last year’s loss of €207mn. The improvement was driven by a strong performance in its Markets and Airlines (M+A) division, which helped more than offset around €40mn of additional costs from the war in Iran.
Due to the uncertainty around the conflict in the Middle East, M+A booked revenue for Summer 2026 is 7% below the prior year. As a result, TUI has suspended its full-year revenue guidance (previously: 2-4% growth).
Full-year underlying operating profit guidance has also been downgraded. It is now expected to be in the €1.1-1.4bn range, pointing to a decline of up to 22% (previously: 7-10% growth).
The shares are down 2.7% in early trading.
Our view
HL view to follow.
TUI key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment.