Skift Take

TUI is grappling with operational challenges due to ongoing delays in Boeing aircraft deliveries. But the European tourism giant still produced record revenue for its hotels, resorts, and cruises.

Jesse Chase-Lubitz

TUI, one of Europe’s largest tourism companies, detailed the operational challenges posed by ongoing Boeing delivery delays during an earnings call on Wednesday.

The Boeing disruptions have forced TUI to extend leases on older aircrafts, impacting TUI's financial performance and operational efficiency.

Despite these challenges, TUI had a strong quarter, with 16% revenue growth to $3.9 billion. The group reported its highest-ever results in the hotels, resorts and cruises segments, a 14% year-on-year rise in guests traveling on holiday, and a 9% growth in winter bookings.

Operational and Financial Challenges from Boeing

TUI CEO Sebastian Ebel said that the company received fewer Boeing aircraft than anticipated, which led to lease extensions on older aircraft.

TUI is in the middle of negotiations for compensation from Boeing.

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