Tui cuts profit forecast as effects of Iran war cost travel group €40m
Summary
Tui, a large European travel company, lost €40 million due to the war in Iran, which forced it to bring thousands of travelers and staff home. As a result, Tui lowered its profit forecast for the year and experienced lower bookings, especially in the eastern Mediterranean.Key Facts
- The Iran war cost Tui €40 million, including repatriating nearly 12,000 holidaymakers and staff.
- Tui had to bring home 5,000 guests from cruise ships in Abu Dhabi and Doha ports.
- Another 5,000 European holidaymakers were repatriated from Turkey, Cyprus, and Egypt.
- 1,500 crew members were also brought back before ships resumed Mediterranean cruises in mid-summer.
- Tui cut its profit forecast from €1.41 billion to between €1.1 billion and €1.4 billion for this financial year.
- Booking revenue and hotel occupancy dropped 7% year on year, with customer interest shifting to western Mediterranean locations.
- Tui has hedged most of its fuel and energy costs to protect against rising oil prices.
- Airlines and energy officials warn of flight cancellations and fuel shortages if Middle East fuel supplies are disrupted.
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