Record Q1 FY2026 Positions TUI Group for Bigger Growth

TUI Group has opened the financial year 2026 with the strongest first quarter performance in its history with €4.9 billion ($5.8 billion) in revenue, even though the broader European travel market remains highly competitive and economically pressured.

Profit growth and customer demand trends

The company managed to hold group revenue almost steady at €4.9 billion ($5.8 billion). At constant exchange rates, this represents a 1.3 percent increase compared to the same period last year, showing resilience despite a tough external environment.

Operational performance improved noticeably. Underlying operating profit, measured as EBIT, rose by €26.3 million ($31.3 million), reaching €77.1 million ($91.8 million) compared with €50.9 million ($60.6 million) a year earlier.

Customer demand for travel also continued to grow. In the first quarter, 7.1 million guests traveled with TUI, which is 2.2 percent more than in Q1 2025.

A particularly strong area was dynamically packaged holidays, where customers combine elements like flights and hotels more flexibly. This segment grew by 8 percent, reaching 0.8 million guests.

Dividend returns after a long pause

Following its positive performance in 2025, TUI is resuming shareholder payouts. A dividend of €0.10 ($0.12) per share has been approved, marking the first dividend distribution after an extended break. This step signals increased financial stability and confidence in the company’s recovery and forward outlook.

Performance across segments

• Within the Holiday Experiences segment, underlying EBIT increased by 8.9 percent, rising from €196.2 million ($233.6 million) to €213.7 million ($254.4 million).
• Hotel occupancy improved by 1 percentage point to 81 percent, up from 80 percent. At the same time, the average bed rate declined to €92 ($109.5), compared with €94 ($112) in the previous year.
• The Cruises segment delivered particularly strong momentum. Driven by robust demand, higher ship occupancy, and fleet expansion, underlying EBIT jumped by 70.8 percent to €82.3 million ($98 million), up from €48.2 million ($57.4 million).
• TUI Musement also improved its performance, selling 2.3 million experiences during the period, which is 1 percent more than last year.
• In the Markets + Airline segment, which includes tour operators and TUI Airline, efficiency gains and a leaner cost structure helped offset competitive pressure. Underlying EBIT improved to the loss of €115.3 million ($137.3 million) from €125.2 million ($149 million).

2026 outlook

Looking ahead, TUI confirms its forecast at constant exchange rates: revenue is expected to rise by 2–4 percent year over year, while underlying EBIT is forecast to grow by 7–10 percent, largely supported by expectations for summer 2026.

CEO Sebastian Ebel added that TUI continues investing in physical retail distribution, with 50 new travel agencies planned in Eastern Europe alone this year.

Photo by Tim Dennert on Unsplash