Holiday giant Tui has hailed the highest annual profits in its history but forecasts more modest sales growth next year and cost cuts across its airline division.
The German firm, which is Europe's largest tour operator, reported underlying profits rose 12.6% in constant currency to 1.46 billion euros (£1.27 billion) for the year to September 30, while revenue rose 4.4%.
Pre-tax profits rose 20% to €1.03bn (£890m).
The group said profits would grow over the next year by 7% to 10%, while revenue is expected to grow by a slower 2% to 4%, with shares down 2% in Frankfurt.
According to Tui, the guidance is given “in recognition of the current business environment as well as prevailing macroeconomic and geopolitical uncertainties.”
The company said it was cutting costs by €250m (£218.5m) in its airlines and marketing division, which saw underlying profits fall by more than a third (34%) in 2024-25 after higher expenses and a hit of “hundreds of millions” from delays in deliveries of Boeing aircraft.
Sebastian Ebel, chief executive of Tui, said he was not looking to cut jobs to generate savings but would cut in other areas, such as reducing the number of external IT workers hired by the group.
In a boost for tourists, he also signaled some easing of pressures on travel prices, saying the market was “getting over times of high inflation.”
He said early signs were “positive” for summer 2026, “with revenue booked well ahead in what remains a challenging operating environment.”
Popular destinations for next year include Greece, the Balearic Islands and Türkiye, according to the firm.
But Tui said he had seen a “marked” drop in recent airline bookings to Jamaica since the devastating hurricane in late October.
The record annual profit for 2025-25 exceeds the improved forecasts given by the company in August, when it raised its outlook after strong summer demand.
Ebel said: “In a highly competitive market environment, we achieved the best result in the company's history and exceeded the forecast EBIT (earnings before interest and taxes) 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 viewable and bookable using AI, for example through partnerships like Mindtrip.
“Customers, such as travel agencies, can now use AI to plan complex round trips and transfer customers directly to a booking using a Tui button.”
But he stressed that “the qualified advice and experience of travel experts are valuable to guests and to us.”
