Holiday giant TUI has said it expects 2025 to be a “challenging” year, but has stressed that it still expects to be successful and will grow profits and revenue.
TUI said it generated revenue of €3.71bn for the second quarter of this year, which was up 1.5% on the same quarter last year.
For the full year, TUI expects to generate a 7%-10% jump in earnings and a 5%-10% increase in revenue.
TUI Group CEO Sebastian Ebel: “We will continue to grow profitably in this financial year. TUI reaffirms its revenue and earnings outlook for 2025. Given the economic conditions, 2025 will be challenging. Europe needs new momentum. We must return to an overall economy that is growing. More investment, more freedom – less regulation and less bureaucracy. This will strengthen the economy and consumer behaviour.”
Mr Ebel added: “The environment was challenging. And the second half of the year will also remain demanding for the overall economy in Europe. Our integrated and diversified business model with its activities in Europe and increasingly also outside Europe, proved its worth again in the second quarter. The Hotel, Cruises and activities business benefited from strong tour operator and travel sales.
“Our focus is now on the important summer business. We are offering more and more products in more destinations for existing and new customers. In times of economic and political challenges, we are focusing on securing margins, driving forward the transformation of the Markets + Airline business [tour operators, retail and TUI Airline] and consistently reducing costs.
“Travel agencies remain an important partner and distribution channel.We are expanding our tour operator business and travel agency sales, as well as our own app, in particular with our dynamically compiled product offerings. We see that customers appreciate the flexibility and significantly greater choice. More individuality, flexibile options and the proven security of package holidays are the strengths of dynamically sourced travel offerings. This enables us to optimise the customer lifetime value and offer customers more frequent leisure activities and trips with TUI all year-round – from summer holidays and city breaks to event activities.
“We are continuing to expand the synergies from our integrated business model and are leveraging the sales strength of our Markets + Airline division strategically and operationally. This will further strengthen the already highly successful Holiday Experiences, as well as the overall profitability of the Group. Our global platforms are increasingly helping us to achieve this.”
Mathias Kiep, TUI Group CFO, added: “We are in a good financial position as a Group. We were able to further reduce our net debt. In March 2025, we successfully refinanced our central financing instrument, the sustainability-linked revolving credit facility (RCF). The new RCF, which has a term of five years and matures in March 2030, has a volume of around 1.9 billion euros and improves our financial flexibility and liquidity position.”
