Holiday giant Tui has hailed the highest annual earnings in its history, but forecast more modest sales growth in the year ahead as it flagged a challenging trading backdrop.
The German firm, which is Europe’s biggest tour operator, reported underlying earnings up 12.6% on a constant currency basis to 1.46 billion euro (£1.27 billion) for the year to September 30 as revenues rose 4.4%.
It saw pre-tax earnings lift by 20% to 1.03 billion euro (£890 million).
The group said earnings were set to grow over the year ahead, by between 7% to 10%, while revenues are expected to rise by a slower 2% to 4%.
The guidance is given “acknowledging the current trading environment as well as prevailing macroeconomic and geopolitical uncertainties,” according to Tui.
It said early signs were “positive” for summer 2026, “with booked revenue well ahead in what remains a challenging operating environment”.
Popular destinations for next year include Greece, the Balearics and Turkey, according to the firm.
The record annual earnings haul for 2025-25 beats the upgraded guidance given by the firm in August, when it raised its outlook after solid summer demand.
Sebastian Ebel, chief executive of TUI Group, said: “In a highly competitive market environment, we achieved the best result in the company’s history and exceeded the EBIT (earnings before interest and tax) forecast for the full year 2025.”
He said the group was expanding its use of artificial intelligence (AI), which he said was a “great opportunity for TUI”.
“We are making our content AI-visible and AI-bookable – for example, through partnerships such as Mindtrip.
“Customers such as travel agencies can already use AI to plan complex round trips and transfer customers directly to a booking via a TUI button.”
But he stressed “qualified advice and the experience of travel experts are valuable for guests and for us”.
