Germany's TUI posted a slightly narrower-than-expected second-quarter adjusted operating loss on Wednesday, as Europe's largest tour company streamlined its airline business and reported strong demand for cruises.
TUI reported a €188 million ($221 million) loss for the quarter ended March 31, nine per cent lower than a year before, despite a €40 million hit from the Iran war that forced flight cancellations and re-routing of ships.
Analysts polled by LSEG had projected a loss of €194 million and shares in TUI rose 0.6 per cent when markets opened.
Bookings for the second half of the year were strong, TUI said, adding higher prices would bolster revenue. Second-quarter revenue was similar to 2025 at around €3.7 billion.
"The very strong results give us confidence for the second half of the year. Due to geopolitical challenges and dynamic operating conditions, this will require great dedication and flexibility," TUI CEO Sebastian Ebel said in a statement.
TUI would continue to focus on diversifying to stay resilient, said Ebel, who later told journalists that he did not expect a jet fuel shortage.
The CEO said there had been no negative impact on TUI cruise bookings tied to the hantavirus scare, adding they were bolstering results and had "extremely strong bookings".
TUI also confirmed its revised April outlook of an adjusted operating profit of €1.1 billion to €1.4 billion for the 2026 financial year.
TUI cut its profit forecast and suspended its revenue guidance last month on the back of spiralling jet fuel costs and the uncertainty surrounding the Iran war.
(Reporting by Joanna Plucinska, editing by Kirsti Knolle, Harikrishnan Nair and Alexander Smith)