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Tui has revealed a 10% drop in UK summer bookings as consumers hesitate to make bookings and switch destinations, while the holiday firm took a 61 million euro (£39 million) hit from the Iran war and hurricanes in Jamaica.

Europe’s largest travel operator is one of several firms to be impacted by the conflict in the Middle East, which began at the end of February.

It said booked revenues for summer were down 7% compared with 2025 for its tours and airline, falling to 10% for the UK market alone.

The US and Israel’s war with Iran has led to a shift in demand from eastern to western Mediterranean destinations, while customers were displaying greater caution and making bookings closer to departure dates, Tui said.

The company also pointed to a “competitive” market for travel.

Nevertheless, Tui said it was expecting Spain, including the Balearics and the Canary Islands, and Greece to be top destinations over the summer.

The German business revealed last month that the Iran war cost it around 40 million euros (£34.7 million) after it was forced to repatriate around 5,000 passengers from two cruise ships anchored in ports in Abu Dhabi.

Tui said on Wednesday that the cruise ships had now departed safely, during a pause in the hostilities, and will commence their summer season itineraries in the Mediterranean from mid-May.

It also said it took a roughly 21 million euro (£18 million) hit during the first half of the financial year from the impact of hurricanes that swept across Jamaica in October last year.

Tui reported an underlying loss before interest and tax, and at constant currencies, of 111 million euros (£96 million) for the first half – an improvement on the 156 million euro (£135 million) loss reported the year before.

It is on track to deliver a full-year operating profit of between 1.1 and 1.4 billion euros, down from previous targets of roughly between 1.5 and 1.6 billion euros.

Sebastian Ebel, Tui’s chief executive, said: “The very strong results give us confidence for the second half of the year.

“Due to geopolitical challenges and dynamic market conditions, it will require great dedication and flexibility.

“We offer our customers a high level of security and quality, especially in turbulent times.

“Package holidays remain the gold standard.”