TUI Q3 revenue misses expectations on soft demand, higher fuel costs

TUI AG

12/08/2026 06:09

Overview
Germany tourism group's Q3 revenue declined yr/yr and missed analyst expectations
Q3 underlying EBIT fell, impacted by geopolitical headwinds and one-off Iran war costs
Company reaffirmed FY26 EBIT guidance, citing resilience in demand and transformation progress

Outlook
TUI reaffirms FY26 underlying EBIT guidance of €1.1 bln to €1.4 bln
Company suspends FY26 revenue guidance due to market uncertainty
TUI sees strong Q4 demand in Holiday Experiences and Cruises, but geopolitical risks persist

Result Drivers
GEOPOLITICAL HEADWINDS - Co said heightened geopolitical uncertainty, including the Iran war, weighed on customer bookings and led to one-off costs
SEGMENT VARIATION - Hotels & Resorts saw solid demand but lower occupancy in affected regions; Cruises benefited from strong demand and higher rates but faced itinerary cancellations due to the Iran war
SOFTER DEMAND AND PRICING PRESSURE - Markets + Airline segment was impacted by softer demand, increased pricing pressure, higher fuel costs and additional market capacity

Company press release: ID:nEQ3QW7fZa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
EUR 5.82 bln
EUR 5.98 bln (5 Analysts)
Q3 Net Debt
 
EUR 2.35 bln
 
Q3 Pretax Profit
 
-EUR 153 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the leisure & recreation peer group is "buy"
Wall Street's median 12-month price target for Tui AG is €10.15, about 37.8% above its August 11 closing price of €7.36
The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 5 three months ago

Reuters Recommended Reads
Aug 12 - Travel company TUI misses profit expectations in third quarter
Aug 11 - UK's InterContinental Hotels H1 RevPAR up 4.1%
Aug 11 - Lufthansa, German pilots' union agree process to resolve labour disputes

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)