Brent crude prices hover near $90 per barrel, as fallout from Iran war hits travel firm Tui’s profits
Shares in German-listed Tui Group are down 3.1% as the company revealed the ongoing fallout from the Iran war.
Cautious travellers have hit booking levels, while geopolitical tensions kept fuel prices high, weighing on operating profits which fell nearly 27% in Q3 to €234.6m. Profits at Tui’s hotels and resorts division fell 6.2% to €122.7m, while occupancy fell 5% due to 77% following a drop in demand across the eastern Mediterranean, Mexico and the Caribbean. Meanwhile, its cruises business saw profits tumble 7.2% to €132.4m after taking a €20m hit from the war in Iran. It comes months after Tui cut its profit forecast and suspended its revenue guidance in March, amid spiralling jet fuel costs and the uncertainty surrounding the Iran war.
Our business model is proving to be resilient.
Travel remains highly relevant to people’s lives, but the timing of travel decisions has shifted.
Continue reading...
