TUI Names New Hotel Partner Chief as Net Debt Falls Below €3bn

TUI's first-half loss shrinks to €111M, net debt falls to €3B, and Philipp von Czapiewski takes over DSR Hotel Holding in August.

The travel group TUI is navigating a shifting landscape. While its winter half-year losses narrowed and net debt eased, the company is also adjusting its management ties with a key hotel chain. Philipp von Czapiewski, who previously ran TUI's Swiss operations, will take the helm of DSR Hotel Holding in mid-August. DSR operates 33 properties across Europe under brands such as A-ROSA and aja, replacing Marek Andryszak who left the group back in March.

The leadership change comes as TUI published its first-half results for the 2025/26 financial year. The company posted an adjusted operating loss of €111 million for the six months to end-March, with the second quarter alone showing a deficit of €188 million. While still in the red, the seasonal winter shortfall was significantly smaller than the prior year, helped by stable cash flows and internal efficiency gains. Revenue held broadly flat at roughly €8.5 billion, and TUI carried nearly 13 million guests in the period, a slight year-on-year increase.

Debt reduction remains a central plank of the strategy. Net borrowings fell to €3.0 billion by the end of March, supported by a steady cash flow and cost discipline. That progress was achieved despite two exceptional shocks that weighed on the quarter. The Iran conflict forced TUI to repatriate customers in March at a cost of around €40 million, while Hurricane Melissa in Jamaica triggered additional damage claims. Without these events, operating profit would have risen organically, according to JPMorgan analysts.

Looking ahead, booking patterns are evolving rapidly. Almost half of potential summer travellers have yet to commit, pushing the business towards last-minute decisions. At the same time, demand is shifting away from the eastern Mediterranean—Turkey and Egypt have seen some weakness—and moving towards Spain and Greece. CEO Sebastian Ebel plans to actively protect margins using artificial intelligence for pricing. TUI’s full-year guidance remains unchanged: adjusted operating profit should land between €1.1 billion and €1.4 billion, though the revenue forecast is suspended due to Middle East uncertainty.

The share price reaction to the report was muted. TUI stock traded at €6.47 on Wednesday, edging up from Tuesday’s close of €6.41, but remains close to its year-to-date low of €6.15. The shares have lost roughly 27% since the start of the year and are trading almost 19% below the 200-day moving average. Breaking that downward trend will depend on whether the surge in late bookings outweighs geopolitical caution among holidaymakers.