Europe’s largest tour operator, TUI, has exceeded quarterly earnings and revenue expectations, buoyed by resilient summer travel demand and strong bookings ahead of the winter season. The performance prompted the company to raise its full-year profit forecast, underscoring confidence in its strategic expansion and investment plans.
The Hanover-based company reported underlying earnings before interest and tax (EBIT) of €321 million for the third quarter ending June 30, marking a 38% increase compared to last year and surpassing the €269 million projected by analysts surveyed by LSEG. Revenue across all segments climbed 7% to €6.2 billion, slightly ahead of market forecasts.
Chief Executive Sebastian Ebel said the results reflected the payoff from TUI’s diversification strategy, which includes expanding its presence across Central Europe and Asia and investing heavily in its hotel and cruise businesses. “The third quarter and the first nine months of the financial year 2025 were strong. Our strategy is paying off,” Ebel said in a statement.
While European airlines faced headwinds in recent months, a feared sharp drop in travel demand failed to materialise. TUI noted that the traditional summer peak season is gradually shifting, with more customers opting for “shoulder season” trips in spring and autumn to avoid extreme heat, overcrowding, and peak prices.
British travellers, a core market for TUI, showed particularly strong booking trends. The company is also anticipating robust winter season demand, with increasing interest in holidays during late October, November, and the Christmas period. To capture this market, TUI is investing in enhancements such as heated pools at year-round destinations in Antalya, the Greek Islands, and Portugal’s Algarve.
However, challenges remain for its airline division. The company flagged weaker demand from German customers and softer bookings for US destinations. In Germany, summer bookings dropped 5%, partly due to unusually hot weather keeping potential holidaymakers at home. Ebel noted that many travellers are instead planning autumn getaways, saying, “There are people who really think, ‘I’ll stay in my garden during the summer, and I’ll go on vacation in October or November.’”
The company also reported a 2% decline in summer bookings linked to the Middle East conflict, though this was offset by a 3% increase in ticket prices, which helped counterbalance rising operational costs.
With European travellers typically more price-sensitive than their North American counterparts, TUI is focusing on value-driven offers and seasonal flexibility. Despite economic uncertainty and geopolitical risks, the group remains optimistic about sustained demand through the end of the year, positioning itself to capture a larger share of the growing off-peak travel market.
