TUI Group reported third-quarter revenue of €5.8bn and underlying operating profit of €234mn, both below expectations, while leaving full-year underlying operating profit guidance unchanged at €1.1bn to €1.4bn. Investors in TUI Group pushed the shares down 3.0% in early trading after the update.
TUI Group third-quarter figures
Revenue fell 5.6% from a year earlier, missing the €6.0bn analysts had expected. Underlying operating profit dropped 27.1% to €234mn, below the €275mn forecast, as weak demand and higher fuel prices weighed on results.
The company said the Iran war had a €20mn direct impact on the quarter. Markets + Airline revenue declined 7.9%, while Holiday Experiences grew, leaving the group with a mixed performance across its businesses.
Markets + Airline pressure
Markets + Airline is the part of the business most exposed to short-term booking swings, so its weaker revenue carried more weight than the rise in Holiday Experiences. The update also shows that later booking patterns made cash flow harder to read.
Over the first 9 months, free cash flow swung from a €431mn inflow to a €189mn outflow, and net debt rose 22.9% to €2.3bn. That shift leaves more pressure on the months ahead to turn summer demand into cash.
Summer bookings at TUI Group
The company said bookings momentum for the crucial summer season was improving even as third-quarter profit and revenue missed expectations. Full-year revenue guidance remains suspended, but the unchanged €1.1bn to €1.4bn operating profit range keeps the year-end target intact.
For investors, the immediate question is whether the stronger summer booking trend can carry enough weight in the fourth quarter to offset the quarter just reported. The numbers point to a business still absorbing the Iran war and uneven demand, while relying on the final stretch of the year to protect the outlook.
