TUI Group’s cruise results highlight resilience despite Middle East disruption

TUI Group’s cruise division posted strong growth despite Middle East disruption, signalling continued confidence in underlying demand.

The group reported a 25.9% year-on-year increase in underlying EBIT to €163.5 million (US$177 million) for the first half of 2026, even as US-Iran conflict-related disruption in the Arabian Gulf affected operations during the second quarter.

Second-quarter EBIT reached €80.3 million (US$87 million), absorbing approximately €20 million (US$22 million) in costs linked directly to the Iran conflict, which led to itinerary cancellations and temporary vessel displacement.

The most immediate operational impact came from the delay to departure of Mein Schiff 4 and Mein Schiff 5 from Gulf ports, forcing the cancellation of sailings from April through mid-May. Both vessels departed the region on April 18th during a pause in hostilities and are scheduled to resume Mediterranean itineraries from mid-May.

Despite the disruption, occupancy for the first half reached 93%, compared with 97% in the same period last year. Adjusted for the cancelled sailings, occupancy would have reached 98%, representing a year-on-year increase.

Pricing also remained stable, with the segment’s average daily rate rising 2% to €223 (US$241), while available passenger days increased 10% to 2.9 million, reflecting ongoing capacity growth across the group’s cruise brands.

TUI operates TUI Cruises, Hapag-Lloyd Cruises, and Marella Cruises, with performance supported by continued demand across both premium and mainstream segments.

The results indicate that while the disruption affected deployment and short-term occupancy, it did not materially weaken pricing power or forward demand.

Looking ahead, TUI expects further capacity growth in the second half of 2026, driven in part by the addition of the newbuild Mein Schiff Flow, which is scheduled to enter service in mid-June.

Booked occupancy for the second half is currently two percentage points below the prior-year level, a gap the company attributes entirely to the Gulf-related cancellations. Average daily rates for the period are tracking 3% above last year.

The performance follows the introduction of Mein Schiff Relax in 2025, as TUI continues to expand its fleet in response to what it describes as sustained market demand.

While the conflict in the Middle East disrupted operations during a key trading period, the group’s results suggest that the impact has been contained, with demand trends and pricing indicators pointing to continued resilience in the cruise sector.