TUI’s airline-linked Markets + Airline division was squeezed in the third quarter as fuel costs, excess capacity and weaker demand hit pricing, while the travel group still confirmed full-year profit guidance. Underlying EBIT for the group fell to €233.8 million in the April-to-June period from €320.6 million a year earlier, with geopolitical disruption tied to the war in Iran also affecting performance.
Markets + Airline revenue declined to €4,957.1 million as customer caution and a softer European backdrop held back sales. The business faced additional capacity in the market, and recent weeks brought some improvement in bookings. TUI also quantified a €20 million direct hit from the Iran conflict in the quarter, while the war in Iran and the hurricane in Jamaica together reduced nine-month earnings by €81 million.
Net debt stood at €2.3 billion at the end of June, up from €1.9 billion a year earlier. TUI reaffirmed its forecast for full-year underlying EBIT of €1.1 billion to €1.4 billion and suspended revenue guidance.