Europe's largest holiday company, Tui Group, has moved to alleviate concerns over aviation fuel supplies this summer, assuring that there is enough jet fuel to maintain flights through the peak season despite rising prices due to the conflict in Iran.
Financial Chief's Assurance
Mathias Kiep, chief financial officer of Tui Group, stated in an interview with The Independent: "I'm very much convinced that we will see no shortage in the next 10 weeks. There's definitely enough fuel." He emphasized that the debate surrounding fuel availability has been exaggerated.
Speaking as the company released its financial results for October 2025 to March 2026, Kiep explained that rising prices have actually boosted oil production profitability in countries like Nigeria, which has stepped in to help meet European demand. Additionally, refinery capacity has increased, and consumption is currently below last year's levels.
No Long-Term Shortage Expected
Kiep further noted that even if the Strait of Hormuz remained closed for an extended period, shortages would still not occur. Tui has hedged against higher fuel costs, meaning the price spike will not directly impact customers.
The UK government echoed this position. A government spokesperson stated that airlines are not currently experiencing a jet fuel shortage, as aviation fuel is typically purchased in advance, and airports and suppliers maintain reserves to ensure resilience.
Financial Impact and Summer Outlook
Tui described its first half of the financial year as "very successful" but warned that the second half would require "great dedication and flexibility." The Iran war cost the company €40 million in lost sales and expenses related to repatriating customers from the Middle East and Asia. Additionally, Hurricane Melissa in Jamaica caused €5 million in losses.
Air bookings for summer are currently 7% below last year's levels. The company noted that travelers are comfortable booking two to three weeks ahead but hesitant to commit months in advance.
Cruise occupancy has dropped from 97% to 93%. Two ships from Tui's German cruise operation were stranded in the Gulf for 10 weeks due to the conflict. Despite these challenges, Tui reported no decline in people's desire to travel and no shift from flying to other transport options.
