Europe's largest travel operator Tui reported a slump in quarterly profits as the Iran war continued to pile pressure on costs and customers leave bookings until the last minute.
The German holiday firm saw year-on-year pre-tax profits plummet by 43 per cent to £131million in the three months to the end of June, as rising fuel costs and increased pressure to cut prices hit its bottom line.
Underlying earnings missed forecasts, falling 27 per cent in the third quarter to £199.7million as customer numbers fell 3 per cent to 9.9million. Revenue fell 5.6 per cent to £5billion.
Chief executive Sebastian Ebel said 2026 had been 'no ordinary year' as the firm battled a 'challenging market environment and ongoing geopolitical uncertainties'.
Tui revealed it had suffered a £69.2million hit in the nine months of its financial year so far from the Middle East conflict and hurricanes in Jamaica. It flagged an additional £17.1million direct impact from the Iran war on its cruises arm in the three months to June.
