TUI on track to deliver raised FY25 underlying EBIT growth - Get updated on what's happening in tourism!

TUI today issued a pre-close trading update ahead of its FY25 results on 10 December. The Group confirms it is on track to deliver the upgraded underlying EBIT growth of +9–11% (at constant currency) announced in August, supported by strong trading in Holiday Experiences and resilient demand across Markets & Airlines.

Key highlights

·         Strong summer 2025 performance with 14.1 million bookings secured across all source markets

·         Winter 2025/26 off to a solid start with 1.8 million bookings already, up +1% year-on-year

·         Holiday Experiences driven by higher occupancies, stronger rates, and expanded capacity across Hotels & Resorts and Cruises

·         Strategic partnership signed with Oman’s OMRAN Group to jointly develop five new hotels in Dhofar; OMRAN to take a 1.4% strategic shareholding in TUI

·         Guidance reaffirmed: FY25 revenue to grow +5–10%, underlying EBIT +9–11%

Holiday Experiences

Hotels & Resorts – Demand for TUI’s diversified hotel brands continues to grow. Q4 available bed nights increased +1%, with booked occupancy up +2 percentage points, led by strong RIU performance. For H1 FY26, portfolio growth is expected to deliver a +5% capacity increase, with average daily rates up +6% across brands. Key destinations for winter include the Canaries, Egypt, Cape Verde, and the Caribbean.

Cruises – The introduction of Mein Schiff Relax in March 2025 and fewer dry dock days at Hapag-Lloyd Cruises increased available passenger cruise days by +14% in Q4 and +13% in H1 FY26. Occupancy levels rose +1 percentage point in Q4 and +7 points in H1 FY26, supported by strong demand in Germany and the UK. Winter itineraries cover the Canaries, Caribbean, Central America, Northern Europe, Asia, Africa, and a semi-circumnavigation of Antarctica.

TUI Musement – The tours and activities segment is on track for mid-single-digit growth in Q4, with early bookings for H1 FY26 showing positive momentum. Transfers are in line with airline volumes.

Markets & Airlines

Summer 2025 – Despite a competitive environment, extreme weather, and geopolitical tensions, bookings closed at 14.1 million (-2% vs prior year), with average selling prices up +3%. Greece, Türkiye, the Balearics, and the Canaries remain core markets, with Egypt showing notable growth. Long-haul demand was strongest for Mexico, the Dominican Republic, Thailand, and the UAE. The UK market finished +1% higher, while Germany remained at -5%, reflecting the focus on margin protection.

Winter 2025/26 – Trading shows resilience with 1.8 million bookings so far, up +1% on prior year, and ASP up +3%. Popular destinations include the Canaries, Egypt, Mainland Spain, and Cape Verde, with Thailand recording the fastest long-haul growth. UK bookings are broadly in line with last winter, while Germany shows +1% growth.

Strategic developments

TUI has signed a strategic alliance with Oman’s OMRAN Group to jointly develop five new hotels in the Dhofar Governorate. As part of the agreement, OMRAN will acquire a 1.4% strategic stake in TUI via newly issued shares at €9.50 per share.

Guidance reaffirmed

For FY25, TUI expects at constant currency:

·         Revenue growth at the lower end of +5–10% (FY24: €23.2bn)

·         Underlying EBIT growth of +9–11% (FY24: €1.3bn)

·         Slight improvement in net debt (FY24: €1.64bn)

·         Looking ahead, TUI reiterates its mid-term ambitions:

·         Underlying EBIT CAGR of +7–10%

·         Net leverage target strongly below 1.0x

With recent upgrades from rating agencies, TUI has now returned to pre-pandemic credit levels.

Image Credit: © TUI Group