TUI has issued a stark warning for passengers regarding its operations in Turkey, Egypt, and Cyprus, which have been severely impacted by the ongoing conflict in the Middle East. The travel giant, which operates flights from Birmingham, estimates it has lost £35 million due to the Gulf crisis.
Repatriation and Financial Impact
TUI, competing with Ryanair, Jet2, Easyjet, and others, has repatriated nearly 12,000 holidaymakers and staff. The company also brought home 5,000 guests from two cruise ships docked in Abu Dhabi and Doha, and repatriated an additional 5,000 European holidaymakers from the region. On Wednesday, April 22, TUI was forced to cut its profit forecast for the current year.
Shift in Customer Demand
The company noted that its operations in Turkey, Cyprus, and Egypt were particularly badly affected. TUI reported a partial shift in customer demand from the eastern Mediterranean to destinations in the western Mediterranean. Demand is increasing for holidays in Spain, Portugal, Greece, and Cape Verde, according to TUI.
TUI stated that its profit guidance assumes no material escalation in geopolitical tensions and that fuel supplies can be maintained. The company commented: "The ongoing conflict in the Middle East and the uncertainty surrounding its duration continue to limit near-term visibility and drive consumer caution."
Revised Profit Forecast
TUI now expects full-year underlying EBIT to be in the range of €1.1 billion to €1.4 billion, down from its previous expectation of between €1.5 billion and €1.6 billion. The group adjusted its guidance at constant currency and now expects underlying EBIT for FY 2026 to be in the range of €1.1bn to €1.4bn. TUI is also suspending revenue guidance until conditions stabilise.
