TUI reported a 188 million euro (US$221 million) loss for the quarter ended March 31, 9% lower than a year before, despite a €40 million euro 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% when markets opened.
Airlines have warned of the knock-on effect of the war that began on Feb 28, while tourists have started booking trips closer to home and more last-minute to avoid disruption.
The January to March quarter of the year is often loss-making for airlines as people take fewer holidays.
TUI highlighted the last-minute booking trend, adding that tourists were shifting away from holidays in the east of the Mediterranean towards the west of the region.
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 euros.
“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.
“We think that the discussion on fuel is a little bit artificial as we do see no shortages for the next weeks, and I would also see no impact in the summer at all, except (higher) prices,” Ebel said on a media call.
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 euros 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.