TUI Cuts Annual Profit Forecast Due to Iran War
TUI lowered its annual profit forecast today due to rising fuel costs and travel disruptions from the Iran war. The group also suspended its revenue guidance.
TUI AG, the largest tour operator in Europe, has revised its full-year underlying operating profit forecast downward and suspended its revenue guidance. The company cited significant uncertainty caused by the conflict in Iran as the primary driver for this adjustment. TUI, which operates its own aircraft fleet, is particularly exposed to travel disruptions and fluctuations in jet fuel supplies. The group joins other major carriers, including EASYJET PLC and WIZZ AIR HOLDINGS PLC, in warning about the negative impact of regional instability on profit margins.
For the fiscal year ending September 30, 2026, TUI now expects underlying earnings before interest and taxes (EBIT) to range between 1.1 billion euros and 1.4 billion euros ($1.3 billion to $1.6 billion). This is a revision from previous expectations of a 7% to 10% increase over the 1.4 billion euros recorded in the prior year. Following the announcement, the company's shares declined by 2% during morning trade.
