Last minute trips boost Europe's travel giant TUI, forward bookings slightly dip

TUI TUI1n.DE, Europe's largest travel operator by market share, on Tuesday reported an operating profit above expectations for its first quarter, noting a trend towards last-minute bookings and higher prices, but analysts warned of a weakening in demand driving slower bookings.

The company has struggled with weakness in its core German market but bolstered its results by focusing on making its offer more international and emphasising its more profitable businesses, including hotels. Still, its shares have been lagging, with Chief Executive Sebastian Ebel repeatedly saying that he hopes for an improvement in the share price.

TUI shares were down 2.8% in premarket trading after the results were announced.

Citing a strong performance in holiday experiences and in markets and airlines, TUI reported an operating profit of 77.1 million euros ($91.80 million) in the final three months of 2025, its first quarter, up from 51 million euros a year earlier and higher than the 66.7 million euros forecast by analysts polled by LSEG.

Ebel cheered the record first quarter results, adding that the beat was despite losses tied to Hurricane Melissa's impact on its hotels in Jamaica.

Still, analysts pointed to slightly weaker winter and summer forward bookings as a point of concern, which the airline said was expected.

"There has been a substantial fall off in demand," equity research business Bernstein said in a note.

Ebel added in a media call with journalists that demand has shifted away from the U.S. and towards Asia, but that he was hopeful demand remained strong from Europeans looking to travel to the Caribbean.

The first three months of the year are usually the weakest for airlines due to a slowdown in travel bookings at the start of the year.

TUI reconfirmed its December guidance that revenue will likely increase by 2%-4% and underlying operating profit will rise by 7%-10%, meaning it will not sustain growth from 2025 as markets had assumed.

($1 = 0.8398 euros)

TUI: Direction of Travel https://reut.rs/4kxmHJY

-Reporting by Cian Muenster and Joanna Plucinska, editing by Linda Pasquini, Kirsten Donovan and Louise Heavens/Reuters