Tui accelerates in Frankfurt, beating expectations in the third quarter and raising guidance

(Il Sole 24 Ore Radiocor) - Tui celebrated on the Frankfurt Stock Exchange after strong third-quarter results, which not only beat expectations but also led to an increase in forecasts for the full year. Shares in Europe's leading tourism group rose more than 6%. As a press release noted, Tui posted "its best-ever underlying EBIT in the third quarter, amounting to €321 million," with growth of 38%, " driven by a record result from the Holiday Experiences business " and the Easter holidays, this year in April, which benefited the Markets and Airline segment in particular. Analysts had averaged EBIT of €269 million. Group revenues for the quarter rose 7% to €6.2 billion, slightly exceeding forecasts.

In adjusted EBIT, Hotels & Resorts posted €131 million, "in line with the previous year's record," Cruises posted a record €143 million , up 56% thanks to the introduction of two new ships, and Tui Musement posted a 6.8% increase to €20.8 million. These three businesses comprise the Holiday Experiences segment. The Markets and Airline segment achieved an EBIT increase of €33 million to €50 million "in a competitive market. " Profit for the quarter was €225 million, up from €104 million . In the nine months, the group's underlying EBIT jumped to €165 million from €49.2 million in the same period last year, on revenues of €14.8 billion (+7.5%). The loss amounted to €69 million, an improvement from the €227 million loss in 2024.

"Thanks to the strong performance in the first nine months and the positive initial guidance in July," TUI raised its guidance for adjusted EBIT for the year, now forecasting an increase of 9-11% from the previous 7-10%, at constant exchange rates, compared to €1.3 billion in 2024. Revenue is expected to increase at the low end of the forecast range of 5% to 10% compared to €23.2 billion last year. " The third quarter and the first nine months of the 2025 financial year were solid . Our strategy is paying off. We are benefiting from our integrated and diversified business model and have succeeded in further reducing the group's seasonality. All this in a still challenging environment for our M&A segment, with economic difficulties in Europe, summer heatwaves across Europe and the conflict in the Middle East," CEO Sebastian Ebel said in a statement.

"We are seeing strong growth and have raised our full-year targets. We have achieved record results for our hotel and cruise brands. We are committed to transforming the business from that of a traditional tour operator" in all markets, " by increasing product share, becoming more efficient in our processes, and reducing costs through global production platforms. This will enable us to grow profitably," the CEO added. TUI also expressed confidence in upcoming winter bookings, noting a significant increase in interest in shoulder-season travel , namely stays in the autumn and in any case before the Christmas period.

On the other hand, the group acknowledged that the environment remains challenging for its airline business, both due to weak German consumers and bookings to the United States. The 2% drop in summer bookings was attributed to the conflict in the Middle East, but the 3% increase in ticket prices helped offset the higher costs . Holiday bookings in Germany fell by 5% due to high temperatures, Ebel later told reporters, but he expected demand to increase in the fall.