This article first appeared on GuruFocus .
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Revenue:Slightly up on a constant currency basis compared to last year.
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Underlying EBIT:Significant increase, marking the 14th consecutive quarter of growth.
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Net Debt:In line with the prior year, impacted by working capital due to fewer customer prepayments.
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Interest Costs:Expected to be at the lower end of EUR325 million for the full year.
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Market & Airlines Performance:Significant improvement with less winter losses, though impacted by the Iran situation.
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Hotel Business:Impacted by Jamaica and Middle East issues, occupancy levels affected.
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Cruise Segment:Strong performance despite EUR20 million impact from Middle East disruptions.
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Guidance:Adjusted to a range of EUR1.1 billion to EUR1.4 billion due to market uncertainties.
Release Date: May 13, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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TUI AG ( TUIFF ) reported a strong Q2 and H1 performance, marking the 14th consecutive quarter of underlying EBIT growth.
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The company is seeing positive momentum from its transformation efforts, particularly in vertical integration and AI-driven efficiencies.
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Cruise operations are performing exceptionally well, with strong demand and occupancy rates nearing last year's levels despite recent disruptions.
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The introduction of a new loyalty program in the Nordic countries has been well-received, with plans to expand it to other major markets by the end of the year.
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TUI AG ( TUIFF ) is expanding its business with new market entries in Romania and Italy, and further development of its River Cruise business.
Negative Points
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The Iran war and Jamaican hurricane have negatively impacted financial results, leading to a need to adjust guidance for the year.
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Summer bookings are currently 7% lower than last year, with a significant impact on working capital due to reduced customer prepayments.
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The company faces challenges in the hotel sector, particularly in Jamaica and Mexico, affecting occupancy and revenue.
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There is a shift in customer sentiment from East to West Mediterranean, impacting volumes and requiring capacity adjustments.
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TUI AG ( TUIFF ) has reduced risk capacity by 4-5% to mitigate potential market challenges, which could limit growth opportunities.
Q & A Highlights
Q: Have you seen any improvement in the 7% decline in booked summer revenues for Markets & Airlines, and how does pricing factor into this? A: Sebastian Ebel, CEO: We have taken out fixed capacity to avoid discounting and maintain pricing. The decline is consistent, but we are seeing stable pricing in the Western Mediterranean, offsetting other destinations. The inflation effect seen in recent years is no longer present.
Q: Can you explain the margin improvement in Markets & Airlines despite no increase in direct distribution and online mix? A: Sebastian Ebel, CEO: The margin improvement is due to a combination of factors, including efficiency, cost reduction, and lower distribution costs. The transformation is working across various areas, leading to better margins.
Q: What are the assumptions behind the full-year guidance range of EUR1.1 billion to EUR1.4 billion? A: Mathias Kiep, CFO: The guidance range is influenced by market performance, particularly in Markets & Airlines. Upside potential exists if the market recovers, especially in Turkey. However, prolonged crises could pose risks. The net debt target considers lower earnings and working capital impacts.
Q: How is the shift from East to West Mediterranean affecting margins, and what is the outlook for UK demand? A: Sebastian Ebel, CEO: Historically, Eastern Med had higher margins, but Western Med is now stable with strong margins. The shift impacts volumes rather than margins. UK demand is cautious, with reduced capacity to protect pricing.
Q: How are you managing the impact of higher fuel prices on airlines and cruise lines, and what is your capacity rebalancing strategy? A: Mathias Kiep, CFO: We are well-hedged for the summer, but any unhedged capacity could impact profitability. Sebastian Ebel, CEO: We have rebalanced capacity from Cyprus and Egypt to Spain, securing necessary beds. We are cautious about investments but aim to maintain competitiveness.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
