Tui's earning soar but outlook is for 'modest sales growth'
Holiday giant Tui has delivered the highest annual earnings in its history, but forecast more modest sales growth in the year ahead as it flagged a challenging trading backdrop.
The German firm, which is Europe’s biggest tour operator, reported underlying earnings up 12.6 per cent on a constant currency basis to 1.46 billion euro (£1.27bn) for the year to September 30 as revenues rose 4.4 per cent.
It saw pre-tax earnings lift by 20 per cent to 1.03 billion euro (£890m).
The group said earnings were set to grow over the year ahead, by between 7 per cent to 10 per cent, while revenues are expected to rise by a slower 2 per cent to 4 per cent.
The guidance is given “acknowledging the current trading environment as well as prevailing macroeconomic and geopolitical uncertainties,” according to Tui.
It said early signs were “positive” for summer 2026, “with booked revenue well ahead in what remains a challenging operating environment”.
The record annual earnings haul for 2025-26 beats the upgraded guidance given by the firm in August, when it raised its outlook after solid summer demand.
Sebastian Ebel, chief executive of TUI Group, said: “In a highly competitive market environment, we achieved the best result in the company’s history and exceeded the EBIT (earnings before interest and tax) forecast for the full year 2025.”
He said the group was expanding its use of artificial intelligence (AI), which he said was a “great opportunity for TUI”.
“We are making our content AI-visible and AI-bookable – for example, through partnerships such as Mindtrip.
“Customers such as travel agencies can already use AI to plan complex round trips and transfer customers directly to a booking via a TUI button.”
But he stressed “qualified advice and the experience of travel experts are valuable for guests and for us”.
Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said: “TUI continues to deliver for holidaymakers and investors alike, confirming the previously announced beating of its full-year profit guidance, despite some weakness on the top line.
“TUI operates a diverse travel business, owning an airline, cruise ships, hotels, and resorts, serving over 20 million customers across more than 180 destinations.
“Record performances across its hotels, resorts and cruises are doing most of the heavy lifting.
“Strong growth here helped offset double-digit declines in its airline segment, which suffered from stiff competition and the negative near-term financial impact of significant investments as it looks to position itself for the future.”