Oil prices climb as Iran talks hit new impasse; Tui hit by high fuel costs – business live
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…
Oil prices have surged to near $90 per barrel due to the ongoing fallout from the Iran war, which is causing a significant impact on travel firm Tui's profits. The German-listed company's shares have dropped by 3.1% in response. Tui revealed that cautious travelers have led to booking levels falling, while geopolitical tensions have kept fuel prices high, negatively affecting operating profits which plummeted nearly 27% in Q3 to €234.6m.
The profits of Tui's hotels and resorts division decreased by 6.2% to €122.7m, and occupancy dropped by 5% due to a 77% fall in demand across the eastern Mediterranean, Mexico, and the Caribbean. The company's cruises business also suffered, with profits declining by 7.2% to €132.4m after incurring a €20m loss from the war in Iran.
This comes months after Tui had to cut its profit forecast and suspend its revenue guidance in March, amid spiraling jet fuel costs and the uncertainty surrounding the Iran war. Despite these challenges, Tui maintains that its business model remains resilient, emphasizing that travel continues to be highly relevant to people's lives, although the timing of travel decisions has shifted.
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