TUI profits beat guidance, resumes dividend payments

(Sharecast News) - Holiday travel giant TUI on Tuesday said it would resume dividend payments as it posted higher first-quarter earnings but also reported lower passenger numbers. The German travel operator said that a dividend of 10 European cents per share will be approved at its annual general meeting later Tuesday after a break, due to a positive performance last year.

Operating profits for the three months to December 31 rose to € 77.1m, up from €51m a year earlier, driven by a strong performance in its holiday experiences business as well as its markets and airline unit. Analysts had forecast €66.7m.

TUI reported 7.1 million customers in the first quarter, up 2.2% against last year, but air passenger numbers were down 2% to 3.7 million. Revenue stood rose 1.3% to €4.9bn.

Winter and summer booked revenue were down 1% and 2% respectively, the company added as it reiterated 2026 guidance of 2% - 4% revenue growth and underlying operating profit growth of 7% - 10%.

A dividend of 10 euro cents a share will be approved at TUI's annual general meeting later on Tuesday, the company said, adding that from fiscal 2026 it would target a payout ratio of 10-20% of underlying earnings per share "balancing shareholder returns with maintaining operational flexibility for disciplined growth investment and continued deleveraging".

Hargreaves Lansdown analyst Aarin Chiekrie said: "As long as macroeconomic conditions don't deteriorate, TUI looks to be on the right flight path to grow underlying operating profits by between 7-10% this year, in line with guidance."

Reporting by Frank Prenesti for Sharecast.com