Mideast war impact on travel bookings fading, says TUI

German travel company TUI reported a decline in net profit for the latest quarter, with earnings down 44.7% year-over-year to 124.2 million euros (US$143.1 million). However, the company noted a positive trend in travel bookings, which are gradually returning to normal levels despite the ongoing conflict in the Middle East. TUI's CEO, Sebastian Ebel, highlighted that bookings over the past four weeks have increased by 7%, indicating a rebound in consumer interest.

The company attributed the surge in bookings to the reopening of Eastern Mediterranean destinations, as travelers return to the region after a period of geopolitical uncertainty. Despite the challenges posed by soaring jet fuel prices, heatwaves, and wildfires in Europe, TUI CEO Ebel expressed optimism, stating that business is normalizing and that the impact of the Mideast war has affected airlines and cruise operators due to higher fuel costs, leading many clients to alter their travel plans.

Hotel occupancy in the latest quarter, ending in June, fell by 3% compared to the previous six months, showing a significant improvement from the 6% decline observed in the six months prior. Ebel also addressed concerns about the impact of extreme weather conditions and forest fires in Europe, noting that TUI has not observed any adverse effects so far, as weather conditions in many of its destinations are more moderate than in Germany.

He expressed hope that the current situation will persist, suggesting that shoulder seasons could become increasingly popular in both autumn and spring.