(Il Sole 24 Ore Radiocor) - Milano, 22 apr - Anglo-German travel group TUI said it expects to report a 5-25 million euro improvement in its second quarter underlying EBIT at constant currencies compared with the 207 million euro loss posted a year ago, but it suspended its full year revenue guidance and cut its full year EBIT expectations due to the continuing Iran war.

TUI attributed the second quarter improvement to the benefits from the transformation of Markets + Airline despite absorbing approximately 40 million euros from the Iran war in March, including repatriation efforts and related operational disruptions.

"While continuing to demonstrate strong operational improvement in H1 FY 2026, the ongoing conflict in the Middle East and the uncertainty surrounding its duration continue to limit near-term visibility and drive consumer caution," it said.

Against this background, TUI aims to achieve an underlying EBIT at constant currency towards the level of prior year of 1.4 billion euros, supported by the benefits of the transformation and the growth in Cruises.

Subject to the recovery in the respective markets, the group now expects constant currency underlying EBIT for the full year 2026 to be in the range of 1.1-1.4 billion euros compared with the prior guidance of a 7-10% increase from 1.431 billion in full year 2025.

At the same time, TUI is suspending revenue guidance until conditions stabilize. The prior guidance was for a 2-4% increase from 24.2 billion euros in 2025.

Following the onset of the conflict in the Middle East in late February, TUI successfully repatriated around 10,000 guests in March, including approximately 5,000 passengers from cruise ships Mein Schiff 4 and Mein Schiff 5, and around 5,000 guests from European source markets, as well as a further 1,500 crew members.

As a result of the hostilities, Mein Schiff 4 and Mein Schiff 5 remained in the ports of Abu Dhabi and Doha respectively, with all itineraries for these vessels cancelled until mid-May 2026. On April 19, during a pause in hostilities, both ships were able to leave the Persian Gulf safely and will now commence their summer season itineraries in the Mediterranean from mid-May. "Trading for the remainder of our TUI Cruises as well as the Marella Cruises fleet continues to reflect a sustained, strong booking environment, following a very positive Wave Season," the company said.

In Markets + Airline and Hotels & Resorts, the geopolitical situation has led to a partial shift in customer demand from Eastern to Western Mediterranean destinations, with customers demonstrating increased caution and booking closer to departure dates.

As a result, Markets + Airline booked revenue for Summer 2026 is currently 7% below prior year, while hotel occupancy has softened further to 7% below the second half of the prior year.

This development is driven by the impact of the Iran war particularly in Turkey, Cyprus, and Egypt, as well as by the aftermath of the hurricane in the Caribbean.

As of April 15, TUI had hedged 83% of Summer 2026 and 62% of Winter 2026/27 jet fuel requirements, with over 80% of FY 2026 energy costs hedged for TUI's cruise businesses.

TUI will provide a further update when publishing its second.

quarter and half year results on May 13.

(RADIOCOR) 22-04-26 10:05:53 (0231) 5 NNNN