Q3 2026 TUI AG Earnings Call

Speaker #1: Thank you.

Speaker #2: Good morning, and welcome to today's TUI Group Q3 results call. My name is Seb, and I'll be the operator for your call today. If you'd like to ask a question during the Q&A session, please press star 1 on your telephone keypad.

Operator: Good morning and welcome to today's TUI Group Q3 results call. My name is Seb, and I will be the operator for your call today. If you would like to ask a question during the Q&A session, please press star one on your telephone keypad. If you would like to withdraw your question, please press star two. I will now hand you over to Nicola Gehrt, Group Director of Investor Relations. Please go ahead.

Speaker #2: If you'd like to withdraw your question, please press Star 2. I'll now hand you over to Nicola Gehrt, Group Director of Investor Relations. Please go ahead.

Speaker #1: Thanks, Seb. And good morning, ladies and gentlemen. A very warm welcome to our Q3 2026 results presentation, here from the TUI Group campus in Hanover on this wonderful summer day.

Nicola Gehrt: Thanks, Seb, and good morning, ladies and gentlemen. A very warm welcome to our Q1 2026 results presentation here from the TUI Group campus in Hanover on this wonderful summer's day. My name is Nicola Gehrt, and I am Group Director, Investor Relations, and I am delighted to be joined for the presentation by our CEO, Sebastian Ebel, and our CFO, Mathias Kiep. Today, we are pleased to present to you a resilient set of Q3 results, highlighting the strengths of our business in this challenging geopolitical environment. Following the presentation, we will be opening the floor for the Q&A. With that, I have the pleasure to handing over to Sebastian.

Speaker #1: My name is Nicola Gehrt, and I'm Group Director of Investor Relations. I'm delighted to be joined for the presentation by our CEO, Sebastian Ebel, and our CFO, Mathias Kiep.

Speaker #1: Today, we are pleased to present to you a resilient set of Q3 results, highlighting the strengths of our business in this challenging geopolitical environment.

Speaker #1: Following the presentation, we will be opening the floor for the Q&A. And with that, I have the pleasure of handing over to Sebastian.

Speaker #2: Thank you, Nicola, and a very warm welcome also from my side and, of course, from Mathias, with this beautiful picture of our hotel in Santorini.

Sebastian Ebel: Thank you, Nicola. A very warm welcome also from my side and of course from Mathias with this beautiful picture of our hotel in Santorini. When we, 12 months ago, presented our outlook, our guidance, we assumed record profits, and we had excellent five months till the war in and with Iran started, which had direct impacts. The TUI cruise ship stuck, the repatriation cost for the Middle East, for the Far East, the fuel impact, but also for a time period, three months, less bookings, especially, of course, Middle East, also Far East, but also to some of the Eastern Mediterranean countries. This we do see in the H2 of this year. The good development is that we now can see that business is coming back. It is normalizing, and we have seen strong weeks.

Speaker #2: When we, 12 months ago, presented our outlook or guidance, we assumed record profits, and we had an excellent five months—until the war in and with Iran started, which had direct impacts.

Speaker #2: The TUI cruise ship got stuck; there were repatriation costs for the Middle East and the Far East, the fuel impact, but also for a time period—three months—less bookings, especially, of course, in the Middle East, also the Far East, but also in some of the Eastern Mediterranean countries.

Speaker #2: And this we do see in the second half of this year. The good development is that we now can see that business is coming back.

Speaker #2: It’s normalizing, and we have seen strong weeks. What we also see is that our transformation is well underway and supported the result which we can present today.

Sebastian Ebel: What we also see is that our transformation is well underway and supported the result which we can present today. Said that, the Q3, roughly EUR 6 billion revenues, more than 5% below last year. EBIT down at EUR 86 million. Positive, which was not the case a couple of years ago, but Mathias will go more into the details before. If we look into the nine-month numbers, if we take out the direct one-offs, we are still above last year. If we take them into account, we are EUR 40 million down and with a revenue, 1.5% less. That is why we say a very resilient nine months. To just remind you, the TUI-specific direct one-off, EUR 60 million, the Iran war and the two ships, the repatriation, and which is almost forgotten, the EUR 21 million Jamaica hurricane cost.

Speaker #2: That said, Q3 saw roughly €6 billion in revenues, more than 5% below last year, EBIT down €86 million, and positive—which was not the case a couple of years ago. But Mathias will go more into the details.

Speaker #2: If we look into the key numbers for the nine-month period, if we take out the direct one-offs, we are still above last year. If we include them, we are €40 million down, with revenue 1.5% lower.

Speaker #2: So that's why we say a very resilient nine months. And just to remind you, the TUI-specific direct one-offs: €60 million for the Iran war and the two ships, the repatriation—which is almost forgotten—and the €21 million Jamaica hurricane cost.

Speaker #2: And as I said, suffering from high fuel costs, the Eastern Mediterranean softness, and customer consumer caution. Having said that, and seeing that the business is coming back, bookings are coming back considerably, we are able to reconfirm the guidance of €1.1 billion to €1.4 billion.

Sebastian Ebel: suffering from high fuel costs, the Eastern Mediterranean softness, and consumer caution. Having said that, and seeing that the business is coming back, bookings are coming back considerably, we are able to reconfirm the guidance, EUR 1 billion to EUR 1.4 billion. If we go into the details, Hotels & Resorts stable, we had less occupancy, mainly triggered by the Middle East impact, stable rates, slightly bigger offering. If we take the Jamaica impact out, we are almost on the same level. Cruise, very strong. If we would not have had the two ships stuck in the Middle East, it would have been even up compared to last year. Now we are slightly below, and we are in the 9-month, we are significantly above.

Speaker #2: If we go into the details, hotel stable—we had less occupancy, mainly triggered by the Middle East impact; stable rates; slightly bigger offering; and if we take the Jamaica impact out, we are almost on the same level.

Speaker #2: Cruise very, very strong. If we wouldn't have had the two ships stuck in the Middle East, it would have been even up compared to last year, and now we are slightly below.

Speaker #2: And we are in the ninth month; we are significantly above. What is really amazing is, if we take the two ships out, occupancy is above last year and prices are also very strong.

Sebastian Ebel: What is really amazing is if we take the two ships out, occupancy is above last year and prices are also very strong. By the way, this is not only true for TUI Cruises, it is the same for the UK business, Marella Cruises. TUI Musement, strong despite less customers. We are able to sell more products to customers and especially own produced products where we have a higher margin. If we go into the market and airline space, we lost EUR 65 million compared to last year, which is, in this circumstances, probably a resilient, at least from our point of view, resilient result with the impact we discussed almost on the same level like last year. Occupancy still with 91% at a reasonable number. App sales are growing. We have seen that the UK, positive, got a decline.

Speaker #2: By the way, this is not only true for TUI Cruises; it's the same for the UK business, Marella. TUI amusement remains strong. Despite having fewer customers, we are able to sell more products to customers, and especially our own produced products, where we have a higher margin.

Speaker #2: If we go into the market and airline space, we lost €65 million compared to last year, which in these circumstances is probably a resilient—at least from our point of view—resilient result.

Speaker #2: With the impact we discussed, almost on the same level as last year and occupancy still at 91%, which is a reasonable number, though absence is growing. We have seen the UK as positive, but a decline in Germany because of the significant long-haul business, while the Western region is slightly improving.

Sebastian Ebel: Germany, because of the significant long-haul business which was not there, was negative, and Western region is slightly improving. If we look what have been also on the main, what happened with our main initiatives to build the TUI of tomorrow, we are more and more differentiating between the core value TUI products, the differentiated products with our strong brands, with our airline, from the dynamic produced products. This has worked extremely well in Germany with l'tur and therefore on this infrastructure, we have launched Sun Deal last week to give people the right answers if they want to have a differentiated TUI product or a dynamic package, very price-attractive product there. Also supported by the strengthening of our sales approach with our app, we now have integrated semantic search, which has a real shift in conversion.

Speaker #2: If we look at what has also been on the main, what happened with our main initiatives to build the TUI of tomorrow, we are more and more differentiating between the core value TUI products, the differentiated products with our strong brands, with our airline, from the dynamically produced products.

Speaker #2: This has worked extremely well in Germany with Eltour, and therefore, on this infrastructure, we have launched Sundays last week to give people the right answers if they want to have a differentiated TUI product, or a dynamic package—very price-attractive product—there.

Speaker #2: Also supported by the strengthening of our sales approach with our app. We now have integrated semantic search, which has had a real shift in conversion.

Speaker #2: And we are rolling that out until the beginning of next calendar year to all the other markets, so a very good development. We have built the connections to the LMMs, where we do see good conversion and a very attractive sales channel, including the integration into social media.

Sebastian Ebel: We are rolling that out till the beginning of next calendar year to all the other markets. So a very good development. We have built the connections to the LLMs, where we do see good conversion and a very attractive sales channel, including the integration into the social media. We just started with our loyalty program in the Nordics, so the Scandinavia plus Finland, and very recently in the UK and Ireland. Great success, and that should strengthen our TUI ecosystem to keep the customer with all the benefits they can achieve in our ecosystem and make them to even more loyal customer. One of the most important projects we have is the commercialization of our airline, and I am just saying airline, not anymore airlines, because operationally it is now one airline with all the efficiency gains we see.

Speaker #2: We just started with our loyalty program in the Nordics—so Scandinavia plus Finland—and recently, very recently, in the UK and Ireland. Great success, and that should strengthen our TUI ecosystem.

Speaker #2: To keep the customer with all the benefits they can achieve in our ecosystem and make them an even more loyal customer, one of the most important projects we have is the commercialization of our airline. And I'm just saying airline, not airlines anymore, because operationally it's now one airline, with all the efficiency gains we see.

Speaker #2: Now from the marketing sales side we will act as one commercial airline with a full impact on summer 27 when it comes to network, when it comes to sales activity, and this is a major breakthrough because the right combination between seat only third-party and own customer is adding a lot of value.

Sebastian Ebel: Now from the marketing sales side, we will act as one commercial airline with a full impact on summer 2027 when it comes to network, when it comes to sales activity, and this is a major breakthrough because the right combination between seat-only, third party, and own customer is adding a lot of value. When we look at holiday experiences, we had the successful start naming of Mein Schiff Flow. Outstanding NPS. I cannot remember having seen that in any other business before of 95%. So customers are really, really happy with it. It is fully booked out. Occupancy levels above 100% because of the beds for the kids. What we brought into the market also for the foreseeable future is selling extremely strong. We are believing in carbon neutrality and emission reduction. Therefore, we will start operation now with two new build LNG ships.

Speaker #2: When we look at my holiday experiences, we had the successful start and naming of Mindshift Flow. Outstanding NPS—that's something I can't remember having seen in any other business before.

Speaker #2: Of 95. So customers are really, really happy with it. It's fully booked out—occupancy levels above 100% because of the beds for the kids.

Speaker #2: And what we brought into the market also is very is selling extremely strong. We are believing in carbon neutrality and emission reduction. Therefore we will start operation now with a two new build LNG ships not with fossil LNG but with fracked LNG but with bio LNG out of biogas and therefore we can reduce the CO2 footprint to almost 100% 95%.

Sebastian Ebel: Not with fossil LNG, but with bio LNG out of biogas, and therefore we can reduce the CO2 footprint to almost 100%, 95%. It is also very, very important. On the hotel side, yes, we have the one or the other where we have invested in asset. We will open a Robinson Club on Corfu next spring, the year after in the eastern part of Africa, Zanzibar. The main growth comes from management hotels under the TUI BLUE brand. Now we have started business in cities, not for business traveler, but for the tourists. These are leisure hotels. We are starting with Seville and Lisbon. We will roll out that to all major city as the brand is well-recognized, and we can give value to the hotelier and to ourselves.

Speaker #2: It's also very, very important. On the hotel side, yes, we have the one or the other where we have invested in assets. We will open a Robinson Club on Comfot next spring, the year after, one in the eastern part of Africa, Zanzibar.

Speaker #2: But the main growth comes from managed hotels under the TUI Blue brand. Now, we have started business in cities, not for business travel but for tours.

Speaker #2: These are leisure hotels. We are starting with Seville and Lisbon. We will roll that out to all major cities, as the brand is well recognized and we can give value to the hotelier and to ourselves.

Speaker #2: So, a lot of things are transforming at TUI, and therefore we are looking forward to the remaining part of the year and to the coming year.

Sebastian Ebel: A lot of things of transformation in TUI, and therefore we are looking forward to the remaining part of the year and to the coming year. After the prosa, Mathias, the numbers.

Speaker #2: After the Prosa, Mathias, the numbers.

Speaker #1: Thank you. Thanks very much, Sebastian, and a very good morning. Let me just summarize the quarter, and then summarize the EBIT bridges for three months and nine months, before I would then share, as usual, details on P&L, cash flow, and ADAPT.

Mathias Kiep: Thank you. Thank you very much, Sebastian, and a very good morning. Let me just summarize the quarter and then summarize the EBIT bridges for three months and nine months before I would then share, as usual, details on P&L cash flow and adapt. Thereafter, Sebastian will cover bookings, and we will talk about the resulting guidance once more. When I look at the quarter and the nine months year to date, from my perspective, in summary, this is a very robust and resilient result despite a challenging market environment and despite the specific TUI challenges that Sebastian has just described, again, that you also know from our Q2 result. This quarter, as a result, supports well our guidance of EUR 1.1 to 1.4 billion profit.

Speaker #1: And thereafter, Sebastian will cover bookings, and we will talk about the resulting guidance once more. Now, when I look at the quarter and the nine months year to date from my perspective, in summary, this is a very robust and resilient result despite a challenging market environment and despite the specific TUI challenges that Sebastian has just described again, that you also know from our Q2 result.

Speaker #1: This quarter as a result supports well our guidance of €1.1 to €1.4 billion profit, and I think what is important—and which is important to me—is that also the elements below EBIT, the financial profile, very much support our journey. This is something which is in line with our initial expectations, even prior to the situation in Iran, which I think is very pleasing.

Mathias Kiep: I think what is important and which important to me is that also the elements below EBIT, the financial profile, very much supports our journey. This is something which is in line with our initial expectations, even prior to the situation in Iran, which I think is very pleasing. As you said, Sebastian, this is again, a positive Q3. It is also a positive nine months, and at the same time, this result, and you probably know this as well, is in line with 2024 for the quarter and is significantly better for the operation profit for the nine months in 2024. I think that is good in order to put this into perspective. In summary, as you see from the waterfall and holiday experiences, slightly below prior year.

Speaker #1: Now, as you said Sebastian, this is again a positive third quarter. It's also a positive nine months, and at the same time, this result—and you probably know this as well—is in line with 2024 for the quarter, and is significantly better for the operational profit for the nine months in 2024.

Speaker #1: So I think that is good in order to put this into perspective. And in summary, as you see from the waterfall, holiday experiences are slightly below prior year. If you take out the direct impact of the Strait of Hormuz on TUI Cruises, then that would be in line with prior year broadly.

Mathias Kiep: If you take out direct impact of the Strait of Hormuz on TUI Cruises, then that would be in line with prior year broadly. I think if you go through the segments, it is cruises, as Sebastian described, continues to perform outstandingly well, both in the UK and in the German market. Hotels is in line with the quarters before, so very strong and good results. At the same time, the super profitability that we saw in the prior years, we currently don't see because of the situation in Mexico, where we see market softness. So it is not, let's say, a structural difference, but it is a bit of market headwind in one region and amusement business very continuous improvement. Naturally, markets hit the most by the booking environment, at the same time supporting extremely well our hotels and cruise amusement business.

Speaker #1: I think, if you go through the segments, it's cruises, as Sebastian described, continues to perform outstandingly well both in the UK and in the German market.

Speaker #1: Hotels is in line with the quarters before, so very strong and good results. At the same time, the super profitability that we saw in the prior years we currently don't see because of the situation in Mexico, where we see market softness.

Speaker #1: So, it's not, let's say, a structural difference, but it's a bit of a market headwind in one region and the amusement with this very continuous improvement.

Speaker #1: And naturally, markets hit the most by the booking environment are at the same time supporting extremely well our hotels and cruise amusement business. Just anecdotally, if you look at the result in Turkey, what we call gateways to the market overall is down, and our revenue intake in the hotels for Turkey is actually up.

Mathias Kiep: Just anecdotally, if you look at the result in Turkey, what we call gateways to the market overall is down and our revenue intake in hotels for Turkey is actually up. So that is how well the vertical integration works. The picture for the nine months, as described, is even showing that without these direct costs that we have to carry this year, we would be up. Again, a result of this very strong winter, and I think that is important because also the market prior to Iran was not very strong, was soft. In this environment, we created an actually very good result. Now, of course, with this direct impact and with the impact indirectly on bookings, fuel price, et cetera, the geopolitical events had, we are below. Again, this is more than double the result that we had in 2024.

Speaker #1: So that is how well the vertical integration works. The picture for the nine months, as described, is even showing that without these direct costs that TUI has to carry this year, we would be up again—a result of this very strong winter. And I think that is important because also the market prior to Iran was not very strong, was soft, and in this environment we actually created a very good result.

Speaker #1: Now, of course, with this direct impact—and with the impact indirectly on bookings, fuel price, etc.—the geopolitical events had, we are below. But again, this is more than double the result that we had in 2024.

Speaker #1: Now, when we look at P&L, cash flow, and balance sheet to conclude the quarter, I think it's very—I'm very pleased that everything below EBIT is in line with our expectations.

Mathias Kiep: When we look at P&L cash on balance sheet to conclude the quarter, I am very pleased that everything below EBIT is in line with our expectations and our plans. So we can effectively reconfirm everything that we saw at Q2. In particular, interest is expected to be at the lower end, and the Q3 interest expense in the nine months more than support this so far. If you look at EPS, again, a positive EPS in the Q3, which is something which is very important to our financial structure. On cash flow, again, we see a similar picture that then is also reflected on the balance sheet. Structurally, more investments offset by less lease and asset financing amortization, less pension costs and less interest costs.

Speaker #1: Now, our plans—so we can effectively reconfirm everything that we saw for Q2. In particular, interest is expected to be at the lower end, and the Q3 interest expense for the nine months more than supports this so far.

Speaker #1: And then if you look at EPS, again, a positive EPS in the third quarter, which is something that is very important to our financial structure.

Speaker #1: And then on cash flow, again we see a similar picture that is also reflected on the balance sheet structurally by less lease and asset financing amortization, less pension costs, and less interest costs.

Speaker #1: And at the same time, what you then see on the net basis, other than earnings, is working capital, which is a natural result of the booking profile that we currently have.

Mathias Kiep: And at the same time, what you then see on a net basis, other than earnings, is working capital, which is a natural result of the booking profile that we currently have. This is as of 13 June. Naturally, the positive booking environment, as Sebastian will mention and summarize in a second, will have a positive impact on that. At the same time, this is naturally behind last year, and that is something that we currently then also see as a result on the balance sheet. If you go to the balance sheet structure, then net cash is lower, and that is a one-to-one reflection of what we see in the booking intake and the result of the working capital profile. So effectively seasonality only rather than structural impacts. The other comment on the balance sheet is that the intake on the aircraft side is according to plan.

Speaker #1: This is as of 13th of June. Naturally, the positive booking environment Sebastian will mention and summarize in the second will have a positive impact on that.

Speaker #1: At the same time, this is naturally behind last year, and that is something that we currently then also see as a result on the balance sheet.

Speaker #1: So, if you go to the balance sheet structure, then net cash is lower, and that is a one-to-one reflection of what we see in the booking intake and the result of the working capital profile.

Speaker #1: So, effectively, seasonality only, rather than structural impacts. The other comment on the balance sheet is that the intake on the aircraft side is according to plan.

Speaker #1: So you see a bit more asset financing, a bit less leasing. We take profit from the very supportive direct financing market there, and our credit quality.

Mathias Kiep: So you see a bit more asset financing, a bit less leasing. We take profit from the very supportive direct financing market there in our credit quality. At the same time, the Boeing delivery portfolio is something which is in plan and which is impacting naturally our balance sheet in the way you see it here for Q3. I think that is overall, again, a very robust Q3. Again, profitable for Q3 and the nine months, and with that, very supportive to our full year guidance.

Speaker #1: At the same time, the Boeing delivery portfolio is something which is in plan and which is naturally impacting our balance sheet, and the way you see it here for the third quarter.

Speaker #1: I think that's overall, again, a very robust Q3—again profitable for Q3 and the nine months—and with that, very supportive to our full-year guidance.

Speaker #2: Thank you, Mathias, and turning now to outlook. As said, we had quite a challenging, tough month—March, April, May into June. We have seen now, since the last four, five, six weeks, a very different business for summer and winter.

Sebastian Ebel: Thank you, Mathias. Trading and outlook. As said, we had quite a challenging, tough month, March, April, May into June. We have seen now since the last four, five, six weeks, a very different business for summer and winter. If we look into Hotels & Resorts, we see a strong average daily rate. We have seen a slight increase in capacity, and occupancy is now 3% behind last year. Before, when we had the same number three months ago, it was significantly higher. So we are catching up here. On cruise, occupancy, as said, amazingly on the same level, same very high level. Also rates are up while we have 12% higher capacity. TUI Musement is in line with what we have seen before, very robust business. When it comes to market and airlines, we have improved by 1%, now to 6%.

Speaker #2: If we look into hotels, we see a strong average daily rate. We have seen a slight increase in capacity, and occupancy is now three percent behind last year. Before, when we had the same number three months ago, it was significantly higher.

Speaker #2: So we are catching up here on cruise occupancy. As said, amazingly, it's on the same very high level. Also, rates are up while we have 12% higher capacity, and amusement is in line with what we have seen before—very robust business.

Speaker #2: When it comes to market and airlines, we have improved by one percent, now to six percent. If we look into the last weeks, we have seen encouraging momentum, and the last week and this week again is better than the week four or five weeks ago, so the momentum is gaining speed. And you have to see that in light of the fact that we voluntarily cut risk capacity, because otherwise we thought we would get into a significant price war we have seen in the market.

Sebastian Ebel: If we look into the last weeks, we have seen an encouraging momentum, and the last week and this week again is better than the week, four or five weeks ago. So the momentum is gaining speed, and you have to see that in light that we voluntarily cut risk capacity because otherwise we thought we would get into the significant price war we have seen in the market. So capacity and demand is now aligned by this decision to reduce risk capacity. ASP are holding up well, which has been also very important to offset inflation. As I said, the last four weeks trading is very encouraging. Booked revenue up 7%, and that, I say, also surprised me because the weather, with the heat wave now lasting for two months, was not what I had expected. So that is a good development.

Speaker #2: So capacity and demand is now aligned by this decision to reduce risk capacity. And ASPs are holding up well, which has also been very important to offset inflation. And as I said, the last four weeks' trading is very encouraging—booked revenue is up 7%. And that, I must say, also surprised me because the weather, with the heat wave now lasting for two months, was not what I had expected.

Speaker #2: So, that is a good development. Winter started slow, but we have seen the same momentum now also for winter, and it's still quite a long time. Summer lasts till October, winter starts in November.

Sebastian Ebel: Winter started slow, but we have seen the same momentum now also for winter. It is still quite a long time. Summer lasts till October, winter starting in November. We are confident that we will see a good winter. What we should have in mind when we look at these numbers, we always had a strong long-haul business. The U.S. business is significantly down because of the political situation. Middle East is zero. With the package regulation, it has been not allowed to sell to it. Also, the Far East has been significantly impacted because of the very high flight rates. Then we had some destinations like Egypt and Turkey and Cyprus, where we traditionally have been strong, which was very much impacted during these three weeks in order intake. This now has been normalized, and that we are looking forward with optimism.

Speaker #2: So we are confident that we will see a good winter. What we should have in mind when we look at these numbers is that we always had a strong long-haul business, and the US business is significantly down because of the political situation. Middle East is zero, because with the package regulation, it has not been allowed to sell to it.

Speaker #2: Also, the Far East has been significantly impacted because of the very high flight rates. And then we had some destinations like Egypt, Turkey, and Cyprus, where we traditionally have been strong, which were very much impacted during these three weeks.

Speaker #2: In order intake this now has been normalized and that we are looking forward with optimism. And this clearly shows it that we have seen seen after a 14th of June when the first ceasefire was announced a resilient and improved intake and and also the the running week is doing extremely well.

Sebastian Ebel: This clearly shows it that we have seen after 14 June, when the first ceasefire was announced, a resilient and improved intake and also the running week is doing extremely well. That is why we expect that the risk capacity and the demand is in line. Yes, of course, last-minute margins are less, but they are supporting very much our guidance. That led to the clear message. We can confirm the guidance, pivot guidance. Mathias, some more details from your side.

Speaker #2: So that's why we expect that the risk capacity and the demand are in line. Yes, of course, last minute margins are less, but they are supporting very much our guidance.

Speaker #2: And that led to the clear message—we can confirm the guidance, a bit of guidance. Mathias, some more details from your side.

Speaker #1: Yes, thank you. On the segments we talked about, and what I think—again—to highlight in this call, is adjustments to net interest in line with what we guided as modeling assumptions in the last quarter.

Mathias Kiep: Yes. Thank you. On the segments we talked, and what I think, again, to highlight in this call is adjustments, net interest in line with what we guided as modeling assumptions in the last quarter. Net investments, and that is something you also saw from Q3 and nine months results, we reduced. So in line with the efforts to effectively bring in countermeasures against the developments in earnings. We now see that we can reduce that to a level of EUR 810 to EUR 830 this year from a prior range of the lower end of EUR 860 to EUR 900. The rest of the guidance and the modeling assumption remains unchanged. I think important comment, because I get the question a lot, is on net debt.

Speaker #1: Net investments and that's something you also saw from Q3 and nine months results we reduced so in line with the efforts to effectively bring in countermeasures against the developments in earnings we now see that we can reduce that to a level of eight ten to eight thirty this year from a prior range of the lower end of eight sixty to nine hundred.

Speaker #1: The rest of the guidance and the modeling assumption remains unchanged I think important comment because I get the question a lot is on that that I think naturally we already talked about an increase in that that this year because of the Boeing deliveries and that adding more leasing asset financing liabilities on balance sheet now question will be what is working capital doing end of the year you have seen what is the nine months position that is naturally the peak so the impact will naturally per thirtieth of September lower than that and will be a product of what is now the last week's booking development what's October and what's the incoming winter.

Mathias Kiep: I think naturally, we already talked about an increase in net debt this year because of the Boeing deliveries and that adding more lease and asset financing liabilities on balance sheet. Now, question will be, what is working capital doing end of the year? You have seen what is the nine-month position. That is naturally the peak, so the impact will naturally per 30 September lower than that, and will be a product of what is now the last week's booking development, what is October and what is the incoming winter. So there is a bit of volatility, which is more than we usually would have at that point in time. I think we have our own view on that.

Speaker #1: So there's a bit of volatility, which is more than we usually would have at that point in time, and I think we have our own view on that. At the same time, on a net basis, we would say there's not a material change of our corridors, but at the same time, there will be an increase of net debt versus last year.

Mathias Kiep: At the same time, on a net basis, we would say there is not a material change of our corridors, but at the same time, there will be an increase of net debt versus last year. I think that is something which I wanted to bring across in this call as well, with a view to 30 September. With that, Sebastian, I think that is on the financial side for you to summary.

Speaker #1: I think that's something which I wanted to bring across in this call as well, with a view to 3rd September. And with that, Sebastian, I think that's on the financial side for you, to the summary.

Speaker #2: Thank you, Mathias. As said, when we look at what we wanted to achieve, we are personally disappointed. We are happy that we have seen, in these extraordinary market circumstances, and can present a resilient result, especially looking forward for the 12 months.

Sebastian Ebel: Thank you, Mathias. As said, when we look at what we wanted to achieve, we are personally disappointed. We are happy that we have seen in this extraordinary market circumstances, have seen and can present a resilient result, especially looking forward for the 12 months. This resilient result was, of course, and will be, of course, the result of cautious capacity planning, was more profit against growth, and because of the transformation. Therefore, seeing now that the transformation, which, by the way, includes significant cost reductions, will bring us in well position when business and demand will return. Therefore, it is our commitment to deliver sustainable growth and improved shareholder returns.

Speaker #2: This resilient result was, of course, and will be, of course, the result of cautious capacity planning, with more profit against growth, and because of the transformation. Therefore, seeing now that the transformation—which, by the way, includes significant cost reductions—will bring us well positioned when business and demand will return.

Speaker #2: And therefore it's our commitment to deliver sustainable growth and improved shareholder returns. Maybe the good thing is with this unexpected event that we had to be more drastic in what we what we do when it came to cost when it comes to came to transformation looking even more intensively where we do invest how we even better steer into our own assets and what supports that is not only a great finance organization here but also that we brought all the activities under one head our new COO Mark Chomperly and that has helped us again to be even more focused on what we want to achieve.

Sebastian Ebel: Maybe the good thing is with this unexpected event that we had to be more drastic in what we do when it came to cost, when it came to transformation, looking even more intensively where we do invest, how we even better steer into our own assets. What supports that is not only a great finance organization here, but also that we brought all the activities under one head, our new COO, Marco Champalick, and that has helped us again to be even more focused on what we want to achieve. So bad environment, quite promising outlook, and I am really happy to see all the changes which are quite often triggered by AI, because this is the disruptive change in our business model and in tourism. Thank you. Maybe some rain would be also nice.

Speaker #2: So, bad environment, quite promising outlook, and I'm really happy to see all the changes, which are quite often triggered by AI, because this is the disruptive change in our business model and in tourism.

Speaker #2: Thank you. And maybe some rain would also be nice. Thank you.

Nicola Gehrt: Operator, we are ready for Q&A.

Sebastian Ebel: Thank you.

Speaker #4: We will now move on to the Q&A session. As a reminder, if you'd like to ask a question, please press star one on your telephone keypad.

Operator: We will now move on to the Q&A session. As a reminder, if you would like to ask a question, please press star one on your telephone keypad. If you would like to withdraw, please press star two. Our first question comes from Jamie Rollo with Morgan Stanley. Please go ahead.

Speaker #4: And if you'd like to withdraw, please press star two. Our first question comes from Jamie Rollo with Morgan Stanley. Please go ahead.

Speaker #5: Thanks, good morning everyone. Three questions please, all on markets and airline, I'm afraid. So, the last four weeks have obviously been pretty encouraging, with seven percent growth in revenue, but you do describe a price war.

Jamie Rollo: Thanks. Good morning, everyone. Three questions, please, all on markets and airline, I am afraid. The last four weeks, obviously pretty encouraging, 7% growth in revenue, but you do describe a price war. Is it fair for us to assume all of that 7% is volume? What are prices down maybe in the last four weeks to stimulate that volume? Secondly, you have cut capacity another 1% or so. How much more could you take out for this season if pricing remains tough? How are you thinking about capacity for the winter season and next summer? Then finally, I think you normally give some figures for the winter season this time of year, particularly for the UK. You also mentioned some structural reasons why it is going to be a tough season given the long-haul exposure is being curtailed.

Speaker #5: So, is it fair for us to assume all of that 7% is volume, and what are prices down, maybe, in the last four weeks to stimulate that volume?

Speaker #5: Secondly, you've cut capacity another 1%. Also, how much more could you take out for this season if pricing remains tough, and how are you thinking about capacity for the winter season and next summer?

Speaker #5: And then finally, I think you normally give some figures for the winter season, this time of year, particularly for the UK. But you also mentioned some structural reasons why it's going to be a tough season, given the long-haul exposure is being curtailed.

Speaker #5: So is there any color you can give on winter bookings, and is it also fair for us to assume that actually winter could be very difficult indeed, given some of that long-haul program will have gone?

Jamie Rollo: Is there any flavor you can give on winter bookings? Is it also fair for us to assume that actually winter could be very difficult indeed, given some of that long-haul program would have gone? Thank you.

Speaker #5: Thank you.

Speaker #2: Thank you. Maybe I said something wrong. For our for our products we don't see the the price war. We see that at the end of the season margin is normally lower but on top of that is is nothing what we what we can see because we are very much in line capacity with with demand.

Sebastian Ebel: Thank you. Maybe I said something wrong. For our products, we do not see the price war. We see that at the end of the season, margin is normally lower, but on top of that is nothing what we can see because we are very much in line capacity with demand. If I said something wrong, please apologize that. We do not see the necessity to take out any capacity anymore for summer, unless there is some unhelpful event, which we hopefully will not see. There is from that side, no pressure. The pressure all comes from the three months after the war started. If we look into the winter, I also am a finance person, but as Mathias is in charge of the finance, he said we should be very cautious on that.

Speaker #2: So if I said something wrong, please apologize for that. And we don't see the necessity to take out any capacity anymore for summer, unless there is some unhelpful event, which we actually, hopefully, will not see.

Speaker #2: So there is from that side no pressure. The pressure all comes from the three month after the the war started. If we look into the to the winter I also our finance person but as Matthias is in charge of the finance he said we should be very cautious on that although I'm I'm I'm cautiously optimistic not only because of the recent bookings but I think that the ones which were not traveling in in summer may go into the shoulder months we have increased our footprint for November February March and therefore I'm positive there we haven't increased the risk capacity we have slightly less risk capacity but we are flexible enough to to to to react if there's bigger demand or less demand.

Sebastian Ebel: Although I am cautiously optimistic, not only because of the recent bookings, but I think that the ones which were not traveling in summer may go into the shoulder months. We have increased our footprint for November, February, March, and therefore, I am positive there. We have not increased the risk capacity. We have slightly less risk capacity, but we are flexible enough to react if there is bigger demand or less demand. You are right. That is also quite interesting to see some of the customers who went to the US go to Canada, only a portion. Some of the customers who did not go to the Caribbean, Mexico has a weakness, go to Egypt. Others have not gone long haul but have gone on a ship.

Speaker #2: And you are right. And that's also quite interesting to see some of the customers who went to the US go to Canada; only a portion. Some of the customers who didn't go to the Caribbean, Mexico has a weakness, go to Egypt; others haven't gone long haul but have gone on a ship.

Speaker #2: So I assume that it will take a couple of months until long-haul will recover, even if we assume that there will hopefully be some more peace in the Middle East.

Sebastian Ebel: I assume that it will take a couple of months till long haul will recover, even if we assume that there hopefully will be some more peace in the Middle East. Therefore, it has been always good that the risk capacity is except the flights to the Caribbean, which are also very strong for us, is more a non-risk play, where the impact on margin is less important. That is why slower start for the winter, but encouraging if I look at where margins should come from and when it comes to occupancy, not occupancy, utilization of the aircraft. Of course, we have optimized a lot. We took closed long haul in Belgium. We put this machine, the planes into Amsterdam, a very slot restricted airport, and with a good success.

Speaker #2: And therefore it has been always good that the risk capacity is except the flights to the to the Caribbean which are also very strong for us is is more a a non-risk play where the where the impact on margin is is less important.

Speaker #2: So that's why a slower start for the winter, but encouraging if I look at where margins should come from. And when it comes to utilization of the aircraft—not occupancy, but utilization.

Speaker #2: And of course we have optimized a lot we took closed long haul in Belgium we put this machine the planes into Amsterdam a very slot restricted airport and with a good success that's the reason why we have seen a small improvement in in Western Europe hopefully more to come in the coming season.

Sebastian Ebel: That is the reason why we have seen a small improvement in Western Europe, hopefully more to come in the coming season. I look quite encouraged to the winter, and we will be very cautious with capacity.

Speaker #2: So I look quite encouraged for the winter. And we will be very cautious.

Speaker #5: Thanks. Just maybe as a follow up. Given all the pressure in in markets and airline if we take the low end of your full year EBIT guidance of one point one billion that suggests Q4 markets and airline profit of under four hundred million.

Jamie Rollo: Thanks. Just maybe as a follow-up, given all the pressure in markets and airline, if we take the low end of your full year EBIT guidance of EUR 1.1 billion, that suggests Q4 markets and airline profit of under EUR 400 million, which would be a drop of around EUR 250 million year on year, and that would be about four times the profit drop you just reported. I am just wondering, is that still a realistic scenario to be at the low end of the full year EBIT guidance? Thank you.

Speaker #5: Which would be a a drop of around two hundred and fifty million euros year on year. And that would be about four times the profit drop you just reported.

Speaker #5: I'm just wondering, is it still a realistic scenario to be at the low end of the full-year EBIT guidance? Thank you.

Speaker #2: I mean as I'm sitting next to Nicola and Matthias I have to be very cautious to what I what I what I say. And of course there is which is a little bit surprising when you are in in in August some uncertainty from river cruise which has to stop operations to to to to fuel price the less last open position.

Sebastian Ebel: As I am sitting next to Nicola and Mathias, I have to be very cautious to what I say. And of course, there is, which is a little bit surprising when you are in August, some uncertainty from River Cruise, which has to stop operations to fuel price, the last open position. Let us add that that way, and hopefully I am not killed from right or left. I would be very disappointed with EUR 1.1 billion. Is that allowed to say? Maybe this answer helps a little bit.

Speaker #2: Let's add that that way, and hopefully I'm not killed from right or left. I would be very disappointed with €1.1 billion. Is that allowed to say?

Speaker #2: Maybe this answer helps a little bit.

Speaker #5: I'll be as clear as possible. Thank you very much.

Jamie Rollo: I think that is clear enough. Thank you very much.

Speaker #1: Thank you. Next question is from Kate Xiao with Bank of America. Please go ahead.

Operator: Thank you. Next question is from Kate Hsia with Bank of America. Please go ahead.

Speaker #4: Good morning.

Sebastian Ebel: Good morning.

Speaker #3: Thank you very, very much for taking my questions. Good morning. Can I ask a quick follow-up on the guidance? How about the high end of the range, then?

Kate Hsia: Thank you very much for taking my questions. Morning. Can I ask a quick follow-up on the guide? How about the high end of the range? Do you still have the ambition to potentially get back to last year's EBIT level? If you were able to get there eventually, what would need to happen at this point? A second question also on your capacity. I was wondering if you could elaborate a little bit more in your risk capacity cuts. How much is dynamic through partners compared to owned? With the recent more positive momentum in booking trend, are these bookings going through your own capacity or dynamic? Thank you very much.

Speaker #3: Do you still have the ambition to potentially get back to last year's EBIT level? And you were able to get there eventually. What would need to happen at this point?

Speaker #3: Second question, also on your capacity. I was wondering if you could elaborate a little bit more on your risk capacity cut. How much is dynamic through partners compared to owned?

Speaker #3: And with the recent, more positive momentum in booking trends, are these bookings going through your own capacity or through dynamic? Thank you very much.

Speaker #2: Could you do the first one before I say something wrong?

Sebastian Ebel: Will you do the first one before I say something wrong?

Speaker #4: Yes. Let me cover on the guidance indeed. So I think when we compare to our Q2 position we set out a corridor of one point one to one point four in Q2.

Mathias Kiep: Yes, let me cover on the guidance. I think when we compare to our Q2 position, we set out a corridor of EUR 1.1 billion to EUR 1.4 billion in Q2, and there was unclarity about how would the market return link to how quickly would the situation in the Middle East be resolved. We have seen the very positive impact from the peace treaty at the time. We have seen the very positive impact whenever the situation calmed down. There is another element, which is fuel prices, where there was the question, would they come back quickly? Which they, in one window did, but did not really stabilize on that level.

Speaker #4: And there was some uncertainty about how the market would return, linked to how quickly the situation in the Middle East would be resolved. We’ve seen the very positive impact from the peace treaty at the time.

Speaker #4: We've seen the very positive impact whenever the situation calmed down. There's another element, which is fuel prices, where there was the question: would they come back quickly, which they, to one in one window, did, but did not really stabilize on that level.

Speaker #4: So I think that if you take a step back, those impacts we not only see in markets and airlines, as a lot of questions are, but that's something also on the related activities in the hotels, to key on the footprint that we have there, Cyprus with the crew.

Mathias Kiep: So I think if you take a step back, those impacts we not only see in markets and airlines, as a lot of questions are, but that is something also on the related activities in the Hotels & Resorts, Turkey on the footprint that we have there, Cyprus with the cruise. So there is a lot of ingredients that we had when we set out the guidance in Q2. Now we are advanced 3 months more, and I think what is a very good picture and how we look at this is that naturally we have narrowed the corridor. So I think as Sebastian said, given the volatility around us, you cannot exclude the lower end or the upper end, because otherwise we would have done that.

Speaker #4: So there are a lot of ingredients that we had when we set out the guidance in Q2. Now we are advanced three months more, and I think what is a very good picture—and how we look at this—is that, naturally, we have narrowed the corridor.

Speaker #4: So I think, as Sebastian said, given the volatility around us, you can't exclude either the lower end or the upper end, because otherwise we would have done that.

Speaker #4: But at the same time, naturally with the trajectory that we have, you come in a narrower corridor, but at the same time this is unfortunately not the time to specify this further.

Mathias Kiep: But at the same time, naturally, with the trajectory that we have, you come in a narrower corridor, but at the same time, this is unfortunately not the time to specify this further.

Speaker #2: Yes. Thank you, Mathias. On the risk capacity, as I said, at least I and some other colleagues didn't expect that the business would now come back as it has come back.

Sebastian Ebel: Yes. Thank you, Mathias. On the risk capacity, as said at least I and some other colleagues did not expect that the business now would come back as it came back. And maybe we could have been less price-focused when we would have known that the business comes back as it is, because our own flying, our own risk hotel capacity is sold as it should be sold. So whatever now comes is the majority, the huge majority is on dynamic capacity, and it is mainly to destinations like Turkey, some Greece, some Egypt. And therefore, the impact is on margin and fixed cost coverage, but it is not on getting a better load factor, because this opportunity is limited. And therefore, if destinations keep stable, the risk is limited, but also the opportunity is limited. The opportunity comes from the dynamic part and from a few countries.

Speaker #2: And maybe we could have been less price-focused if we had known that the business would come back as it is, because our own flying, our own risk hotel capacity is sold as it should be.

Speaker #2: Sold. So whatever now comes is the majority the the huge majority is on on dynamic capacity and it's mainly to destinations like like Turkey some Greece some some Egypt.

Speaker #2: And therefore the impact is on margin and and fixed cost coverage but it's not on on getting a a better load factor because this opportunity is is is is is limited.

Speaker #2: And therefore, if destinations keep stable, the risk is limited, but also the opportunity is limited. The opportunity comes from the dynamic part and from a few countries.

Speaker #3: Thank you very much.

Kate Hsia: Thank you very much.

Speaker #1: Thank you. Our next question is from Leo Carrington with Citi. Please go ahead.

Operator: Thank you. Our next question is from Leo Carrington with Citi. Please go ahead.

Speaker #5: Good morning. Thanks for taking my questions. I also have three—just one on trading, and a couple of strategic. On trading, in terms of the markets and airlines business, do you get a sense of why the bookings originating in the UK are lagging Germany still?

Leo Carrington: Good morning.

Sebastian Ebel: Good evening.

Leo Carrington: Thanks for taking my questions. I also have three, just one on trading and a couple of strategic. On trading, in terms of the markets and airlines business, do you get a sense of why the bookings originating in the UK are lagging Germany still? Then separately, on the TUI fly platform, is this an ambition, a platform mostly for the winter months, or do you expect some of your summer capacity will be on there in 2027? Lastly, I was interested to see you highlight the TUI BLUE Bhutan. Not necessarily about that property, but in general, I would be interested to know how you perceive the future of, let us say, non-urban leisure destinations, given the trends for travelers to look for cooler locations and atypical summer destinations. Thank you.

Speaker #5: And then separately on the TUI fly platform is this an ambition most a platform mostly for the winter months or do you expect some of your summer capacity will be on there in in in in 2027?

Speaker #5: And then, lastly, I was interested to see you highlight the TUI Blue Bhutan. I mean, not necessarily about that property, but in general, I'd be interested to know how you perceive the future of, let's say, non-urban leisure destinations, given the trends for travelers to look for cooler locations and atypical summer destinations.

Speaker #5: Thank you.

Speaker #2: Germany, our German business, had always had a significantly higher share of dynamic packaged product. And as the market has gone in two directions—one, the differentiated higher-end product on one end; and the price-sensitive dynamic package product—this has worked extremely well in Germany. Well, in a very difficult market, it has worked well with the TUI brand.

Sebastian Ebel: Germany, our German business had always had a significant higher share of dynamic packaged product. As the market has gone in two directions, one, the differentiated higher-end product on the one end, and the price-sensitive dynamic package product. This has worked extremely well in a very difficult market, has worked well with the TUI brand for the differentiated product, with our own hotel product, our own flying and l'tur for the dynamic packaged very price-sensitive product. When I say it worked well, if you take the long haul out, the rest is extremely stable and doing well. The long haul, I think it is very clear that there is no business to the Middle East. There is no business. The approach in the UK was different.

Speaker #2: For the differentiated product with our own hotel product own flying and L tour for the for the dynamic packaged very price sensitive products. Because it's when I say it worked well if you take the the long haul out the the rest is extremely stable and doing well.

Speaker #2: And long haul, I think it is very clear that there is no business to the Middle East; there is no business. The approach in the UK was different.

Speaker #2: We brought everything into the TUI brand, and we had to learn from consumer intelligence that, in some areas, we lost a little bit of the trust of the consumer set. And with TUI, I want to have a TUI flight.

Sebastian Ebel: We brought everything into the TUI brand, and we had to learn from consumer intelligence that we a little bit in some areas, we lost the trust of the consumer setting with TUI. I want to have a TUI flight. I want to have a TUI hotel, and maybe I want a less dynamic packages with other airline or with long-tail hotel. That was the reason why we introduced Sun Deals to make very clear this is this part kind of product and this is the other kind of product. Therefore, whenever the dynamic is stronger than the differentiated products, we will benefit from both segments.

Speaker #2: I want to have a TUI hotel. And maybe I want to have less dynamic packages with another airline over the long-tail hotel. And that was the reason why we introduced Sun Deals, to make very clear: this is this kind of product, and this is the other kind of product.

Speaker #2: And therefore we we when whenever the the the dynamic is stronger than the differentiated products we will benefit from both segments. And when you cut cut capacity as we did in the UK but also in Germany but mainly in the UK then and and the focus is on on on that you're not getting the customers who then go to on the beach or love holidays or other great companies who offer dynamic.

Sebastian Ebel: When you cut capacity as we did in the UK, but also in Germany, but mainly in the UK, and the focus is on that, you are not getting the customers who then go to On the Beach or loveholidays or other great companies who offer a dynamic. We want to get our fair share from this as well, because one thing is clear, we want to grow. Bhutan. I did not know that we have a hotel in Bhutan, but apparently we have one. As we are growing in this area as well. We very much believe in the city leisure destinations. We are going to open the third hotel in New York. What is interesting, people always think a leisure hotel in the city is the same than a business hotel. It is not. It is a very different distribution. It is a very different product.

Speaker #2: And we want to get our fair share from this as well, because one thing is clear: we want to grow. Bhutan—I didn’t know that we have a hotel in Bhutan.

Speaker #2: But apparently, we have one. As we are growing in this area as well, we very much believe in the city leisure destinations.

Speaker #2: We have now—we're going to open the third hotel in New York. And what is interesting, people always think a leisure hotel in the city is the same as a business hotel.

Speaker #2: It's not. It's a very different distribution. It's a very different product. And as much as business travel is, at the moment, not an easy business, leisure is growing significantly, because the second or third trip per year goes quite often into a city.

Sebastian Ebel: As much as business travel is at the moment, not an easy business, leisure is growing significantly because the second, third trip per year goes quite often into a city. There we will benefit from because we know how to distribute this product. Therefore, the RIU Hotels & Resorts in London are doing very well. Toronto is doing very well, and Dublin is doing well. That is why we also have the focus on that. One side effect, we are now opening the first hotel in Lisbon. Maybe there will be a second, hopefully soon. It helps build our brand in this destination where TUI is not known as we are in England or in Germany. With getting customers in the hotels, we will be also able to sell the connected trip product and so on.

Speaker #2: And there we will benefit from, because we know how to distribute this product. Therefore, the Riu hotels in London are doing very well, and in Toronto, it is doing very well.

Speaker #2: And Dublin is doing well, and that's why we also have the focus on that. And one side effect: we are now opening the first hotel in Lisbon.

Speaker #2: Maybe there will be a second, hopefully soon. It helps us build our brand in this destination where TUI is not known as well as we are in England or in Germany.

Speaker #2: So, with getting customers in the hotels, we will also be able to sell the connected trip product and so on. So it's part of the integrated model.

Sebastian Ebel: So it is part of the integrated model, and that is slightly different to a year ago. Today, we look even more how we can get the benefits from the vertical integration. So whenever we go to a destination with a TUI BLUE hotel or RIU hotel, it will be a leisure hotel where we have an own agency where flying could happen. So, a very strong focus on vertical integration. Changing customer preferences, not the consumer change, the climate change is quite interesting. I was in Turkey last week. The weather was cooler than here in Hanover, which was almost the case the whole time. It was dry and here it was humid, and it was windy, and here it was no wind. So I was quite surprised that the customer who were there said it is by far better than what I have seen in Germany.

Speaker #2: And that is slightly different to a year ago. Today, we look even more at how we can get the benefits from the vertical integration.

Speaker #2: So whenever we go to a destination with a TUI Blue Hotel or Riu Hotel, it will be a leisure hotel where we have a known agency where flying could happen.

Speaker #2: So very strong focus on on vertical integration. And changing customer preferences the the the not the consumer change the climate change is quite interesting.

Speaker #2: I was in Turkey last week. The weather was cooler than here in Hanover, which was almost the case the whole time.

Speaker #2: It was dry, and here it was humid. And it was windy, and here it was no wind. So I was quite surprised that the customers who were there said it's by far better than what I've seen in Germany.

Speaker #2: So the feedback is very positive. And that's why we haven't seen that this is a major impact on our business at all. Although the wildfires didn't do it because they were all in non-touristic areas, not in the touristic areas.

Sebastian Ebel: The feedback is very positive, and that is why we have not seen that this is a major does impact our business at all. Also, the wildfires did not do it because they were all in non-touristic areas. In the touristic areas, we had up to now, hopefully, they would say less than the years before. The change has been how the hotels have to be equipped. In the past, it was air conditioning in your room. Now it is about air conditioning, also in the dining facilities, in the sport facilities. By the way, for the longer shoulder seasons, we need also heating. So this has been a change. So no real impact. If you talk about the boom to Nordics, yes, it is a 50% increase from 100,000 to 150,000. That is nice, but it is not game-changing.

Speaker #2: We had up to now, hopefully, they would stay less than the years before. The change has been how the hotels have to be equipped.

Speaker #2: In the past, it was air conditioning in your room. Now it's about air conditioning also in the dining facilities and in the sports facilities.

Speaker #2: By the way, for the longer shoulder season, we also need heating. So this has been a change, but no real impact. And if you talk about the boom to Nordics, yes, it's a 50% increase from 100,000 to 150,000.

Speaker #2: That is nice, but it's not game-changing.

Speaker #1: Thank you. That's interesting. And on the TUI flight platform, just sort of winter versus summer.

Leo Carrington: Thank you. That is interesting. On the TUI fly platform? Just sort of in regards to summer.

Speaker #2: Yes. I think, and that's also something we learned from our dear competitors, sometimes selling not the last five beds with a loss but selling a seat only with a profit is the better part.

Sebastian Ebel: Yes. I think, and that is also from what we learned from our dear competitors. Sometimes to sell not the last five beds with a loss. But selling a seat only with a profit is the better part. You know that we only, or you may know that we only had 5%, or 3% seat only, and it was more a tool to get for the lowest price to sell them and not like we do now. When I had to book for Lanzarote in the spring vacation, I had to pay EUR 1,000 for a seat only. This part of the business we missed. So at the end, we do not want to change the benefits from synergies, from the vertical integration, but to have, let us say, 10% less distressed sales and have less 10% higher value seat only products, that is the strategy.

Speaker #2: And you know that we only had or you may know that we only had 5% for 3% seat only. And it was more a tool to get the for the lowest price to to sell them and not like we do now when I had to book four Lanzarote in the in the spring vacation I had to pay 1,000 euro for a seat only.

Speaker #2: This part of the business we missed. So at the end what we want to we don't want to change the the benefits from from synergies from the vertical integration but to have let's say 10% less distressed sales and have less 10% higher value seat only products that is the the the strategy and some of our dear competitors have proven that this is a good way forward.

Sebastian Ebel: Some of our dear competitors have proven that this is a good way forward. We haven't had the tools. We couldn't sell really single seats, we couldn't sell from the destination, that is all now changing.

Speaker #2: And we haven't had the tools; we couldn't really sell single seats, we couldn't sell from the destination. And that is all now changing.

Leo Carrington: Thank you. Thank you very much.

Speaker #1: Thank you. Thank you very much.

Speaker #3: Thank you. Next question comes from Andre Julliard from Deutsche Bank. Please go ahead.

Operator: Thank you. Next question comes from Andre Juillard from Deutsche Bank. Please go ahead.

Speaker #1: Thank you for taking my question. Three, if I may. First, one about source markets and destinations. Could you give us some more color about the recent trends you've been registering in your main source markets in terms of volumes and pricing?

Andre Juillard: Thank you for taking my question. Three, if I may. First one, about source market and destinations. Could you give us some more color about the recent trend you've been registering in your main source market in term of volumes and pricing? In term of destination, could you give us also some more color about where you still have some capacity and which trend you register at the moment? Second question also about pricing and volume. You were giving some more color about the fact that there was no pricing war. But could you also give us some more information about the trend you register in market and airlines and hotels, where you see some capacity available and where you feel pricing are sustainable? Last one, about the fiscal year 2026 guidance.

Speaker #1: In terms of destinations, could you also give us some more color about where you still have some capacity, and which trends you are registering at the moment?

Speaker #1: Second question also about pricing and volume. You were giving some more color about the fact that there was no pricing war. But could you also give us some more information about the trend you register in the market and in airlines and hotels, where you see some capacity available and where you feel pricing is sustainable?

Speaker #1: And last one about the fiscal year '26 guidance. You were mentioning that you would be disappointed if you were ending the year in the low range of the €1.1 to €1.4 billion.

Andre Juillard: You were mentioning that you would be disappointed if you were ending the year in the low range of the EUR 1.1, EUR 1.4. What would allow you to be in the upper end of this guidance in the actual environment and six weeks before the end of the fiscal year? Thank you.

Speaker #1: What would allow you to be at the upper end of this guidance in the actual environment, and six weeks before the end of the fiscal year?

Speaker #1: Thank you.

Speaker #2: I mean, I don't want to add something to the guidance unless Mathias wants to say something more to that. As I said, it was a personal comment from my side.

Sebastian Ebel: I do not want to add something to the guidance unless Mathias wants to say something more to that. As I said, it was a personal comment from my side. What we do see is that the late markets very much go into Turkey. As I said, Spain is well-booked, quite often sold out. Volumes are, because they had a very slow start, which are available is Turkey and Egypt. When I talk about pricing, what hit us this year were the three months, March, April, May, and part of the June, where we had to stimulate the market. You could argue, did we do too much? But in hindsight, you are always more. Now the whole system has really stabilized, despite the fact that the long haul is very small.

Speaker #2: What we do see is that the late market is very much going into Turkey, as I said. Like Spain, it is well booked and quite often sold out.

Speaker #2: Volumes are because they had a very slow start which are available is is Turkey and and and Egypt and when you when I talk about pricing what hit us this year were the three month March April May and part of the June where we had to stimulate the the market.

Speaker #2: You could argue, did we do too much? But in hindsight, you're always more—now, the whole system has really stabilized, despite the fact that the long haul is very small.

Speaker #2: That was one of the reason why a a a a reven a a price a number wouldn't help because it's very much influenced by the different mixed long haul is normally two times more expensive or at least two times more expensive than the trip to to to Mallorca.

Sebastian Ebel: That was one of the reason why a price number would not help because it is very much influenced by the different mixed long haul is normally two times more expensive, or at least two times more expensive than the trip to Mallorca. But what we do see today with the latest sales pricing is as it was one year ago. What we missed out was the three and a half months since the war started and the special effect which hit TUI, the two ships, the disruption caused bringing customers home and having the special. We are the market leader to Cyprus, so therefore Cyprus, the hit of Cyprus, the huge, there were weeks with 98% down in the first weeks. This was not possible to catch up again.

Speaker #2: But what we do see today with the latest sales pricing is as as it was one year ago what we missed out was the three and a half month since the war started and the special effect which hit TUI the two ships the the disruption caused bringing customers home and having the special I mean where the market leaved to Cyprus so therefore Cyprus the hit of Cyprus the huge there were weeks with 90% down in the first weeks this was not possible to to catch up again.

Speaker #2: If you look at source markets, the bigger markets have seen more impact, but that was more because we put the capacity. However, the Eastern European markets have been doing better. We started Romania—we're quite surprised, as a new entry, about Romania. Spain and Latin America are still very small volumes but doing well.

Sebastian Ebel: If you look at source markets, the bigger markets have seen more impact, but that was more because we put the capacity out. The Eastern European markets have been doing better. We started Romania. We are quite surprised as a new entry about Romania. Spain, Latin America is still very small in volumes, but doing well. At the end, the volumes less were from UK, Germany, and maybe a little bit Belgium. That was the main impact.

Speaker #2: So at the end, the volumes less were from UK, Germany, and maybe a little bit Belgium, so that was the main impact.

Speaker #1: Okay thanks.

Andre Juillard: Okay, thanks.

Speaker #3: Thank you. Our next question is from Karen Puri from JP Morgan. Please go ahead.

Operator: Thank you. Our next question is from Karan Puri from JPMorgan. Please go ahead.

Speaker #4: Hi. Good morning everyone. One question from my end on on holiday experiences please. Hotels and resorts in particular. Given that current trading did sort of improve especially on the occupancy front is is it fair to assume that we see EBIT return to growth in Q4 tracking some of the the REFPA data looks like Turkey and Egypt has has more or less I mean more than recovered actually and and and I guess Mexico and Jamaica should be less of an over overhang?

Karan Puri: Hi. Good morning, everyone. One question from my end on holiday experiences, please. Hotels & Resorts in particular. Given that customer trading did improve, especially on the occupancy front, is it fair to assume that we see EBIT return to growth in Q4? Tracking some of the RevPAR data looks like Turkey and Egypt has more or less, more than recovered, actually. I guess Mexico and Jamaica should be less of an overhang. Any color on this would be really helpful. Thanks.

Speaker #4: Any color on this would be really helpful. Thanks.

Speaker #2: Maybe Mathias you you want to say a few words what what what I said was the impact of the three and a half very difficult month after the war started was of course more or will be more in in July than in October.

Sebastian Ebel: Well, Mathias, you want to say a few words. What I said was the impact of the 3 and a half very difficult months after the war started was, of course, more or will be more in July than in October. October is also summer month. As the improvement steps in more in the latter months of the quarter or in October, we will see the occupancy moving into the right direction. How far? We will see.

Speaker #2: October is also summer month so and as the improvement steps in more in the latter months of of of of of the quarter or in October we'll see we'll see as I the the the occupancy moving into the right direction how how far we will see.

Speaker #1: Yes, I think that's a fair comment. I mean, you saw in Q3, as Sebastian said, we were in hotels slightly below prior year. Now, there's a bit of a catch-up in that we should expect for Q4. That should support the development, but at the same time, we don't expect a step change of the result development.

Mathias Kiep: Yes, I think that is a fair comment. You saw in Q3, as Sebastian said, we were in Hotels & Resorts slightly below prior year. There is a bit of a catch up that we should expect for Q4 that should support the development. At the same time, we do not expect a step change of the result development. So I think that is, I would say, the broad corridor that we look at.

Speaker #1: So I think that is, I would say, the broad corridor that we look at.

Speaker #4: Thank you.

Karan Puri: Thank you.

Speaker #3: Thank you. The next question is from Ricardo Chinchilla with Deutsche Bank. Please go ahead.

Operator: Thank you. The next question is from Ricardo Chinchilla with Deutsche Bank. Please go ahead.

Speaker #1: Okay, good morning. Thank you so much for taking my questions. My first question would be on the AI opportunity. You described AI as potentially disruptive for tourism.

Ricardo Chinchilla: Hey, good morning. Thank you so much for taking my questions. My first question would be on the AI opportunity. You described the AI as potentially disruptive for tourism. What is the largest value pool today? Lower consumer acquisition costs, higher conversion, greater cross-selling, or labor productivity? Going into the normalized power of the business, I was hoping if you could quantify the incremental savings identified since the Q2 update and how much of these benefits should be visible in fiscal 2027. If geopolitical conditions normalize, how much of the 2027 profit growth would come from the recovery versus the help sales initiatives already going on the way? My last question is that recent booking momentum appears to be disproportionately weighted towards dynamic inventory. Should we think about the current booking recovery as more supportive for revenue than for margin recovery? Thank you.

Speaker #1: What's the largest value pool today: lower consumer acquisition cost, higher conversion, greater cross-selling, or labor productivity, going into the normalized power of the business?

Speaker #1: I was hoping if you could give us if you could quantify the incremental savings identified since the second quarter update and how much of this benefits should be visible in fiscal 27 and if geopolitical conditions normalize how much of the 27 profit growth would come from the recovery versus the health self initiatives already going on the way?

Speaker #1: Last question for me is that, you know, recent booking momentum appears to be disproportionately weighted towards dynamic inventory. Should we think about the current booking recovery as more supportive for revenue than for margin recovery?

Speaker #1: Thank you.

Speaker #2: So the first answer is very easy, all. And we wouldn't have had the result we are showing in the third quarter if we wouldn't have had all the positive impacts of less cost, also very much triggered by AI, and of course a game change to customer service—a game change in yielding, in how you do the production.

Sebastian Ebel: The first answer is very easy. All. We wouldn't have had the result we are showing in Q3 if we wouldn't have had all the positive impacts of less cost, also very much triggered by AI. Of course, game change to customer service, game change in yielding in how you do the production. Looking forward, for me, the biggest game change is in distribution, because through the LLMs, you will search direct unless you go to the producer. The good thing is with TUI, we have very strong producer brands, the RIU, the Robinson, the TUI BLUE, the TUI fly, and so on. Two years ago, a year ago, we had 45% differentiated product, and we're on the way to 60%, 65% this year, and the target will be 80%.

Speaker #2: Looking forward, for me the biggest game change is in distribution, because through the LLMs you will search direct unless you go to the producer.

Speaker #2: And the good thing is, with TUI, we have very strong producer brands: the RIU, the Robinson, the TUI Blue, the TUI Fly, and so on. And two years ago, a year ago, we had 45% differentiated product and we are on the way to 60–65% this year. And the target will be 80%. And I see black and white: the market, the consumer, is going to the ecosystem of a big strong brand, or they go to the OTAs to search for something and then will be redirected to it.

Sebastian Ebel: I see black and white, the market, the consumer going to the ecosystem of a big, strong brand, or they go to the LLMs to search for something and then will be redirected to it. That will reduce a customer or the acquisition cost for new customers. That's why we put so much effort to link to the LLMs, and on the other hand, to have a product proposition, which is a TUI product proposition, which you as a customer would book direct, because it will be less easy to sell undifferentiated product in the future because of LLMs. The later trading recovery, let's see.

Speaker #2: And that's and that will reduce customer or the acquisition cost for for new customers and that's why we put so much effort to to link to the LMMs and on the other hand to have a product proposition which is a TUI product position which you as a customer would book direct because it will be less easy to sell undifferentiated product in the in the future because of LMMs.

Speaker #2: And the later trading recovery, let's see.

Speaker #3: Thank you. Next question is from Christian Nedelcu from UBS. Please go ahead.

Operator: Thank you. Next question is from Cristian Nedelcu from UBS. Please go ahead.

Speaker #1: Thank you very much for taking my question. TUI, if I may, the first one is a bit related to one of the previous questions.

Cristian Nedelcu: Thank you very much for taking my question. TUI, if I may. The first one is a bit related with one of the previous questions. If we take a step back on the cost-cutting program, where are we right now? Could you tell us a bit in terms of are we 30% into getting those benefits or 50% into it? We're trying to visualize a little bit next year, what is the type of incremental year-over-year benefit from cost-cutting that we could see?

Speaker #1: If we take a step back on the cost cutting program where are we right now? Could you tell us a bit in terms of are we 30% into it into getting those benefits or 50% into it and we're trying to visualize a little bit next year what is the the type of incremental year year over year benefit from cost cutting that we could see.

Speaker #1: And secondly we discuss about the working capital and we're seeing some of your competitors being more aggressive by by asking lower deposits could you talk a little bit there have have you made any changes there in terms of the deposits on when when the prepayments are are are made and to what extent that is one of the the reasons the working capital has been a bit weaker?

Cristian Nedelcu: And secondly, we discuss about the working capital. We are seeing some of your competitors being more aggressive by asking lower deposits. Could you talk a little bit there? Have you made any changes there in terms of the deposits and when the prepayments are made, and to what extent that is one of the reasons the working capital has been a bit weaker? Thank you.

Speaker #1: Thank you.

Speaker #2: Yes. So good morning.

Mathias Kiep: Yes. So good morning, Cristian. On the working capital side, I think we generally don't do working capital-driven incentives. What we give to the teams is that they can support their market activities, and if there's need for adjustments, then we can discuss this. But there's no general kind of push to generate working capital or to use working capital as a key lever to generate bookings the other way. We also see from a consumer side that this is not ranked as a key priority. These are more other factors, and otherwise, we would also not see the bookings return, if that was the number one question.

Speaker #1: Christian on the working capital side I think we generally don't do kind of working capital driven incentives what we give to the teams is that they can support their market activities and if if there's need for adjustments then we can discuss this but there's no general kind of push to do to generate working capital or to use working capital as a key kind of lever to generate bookings the other way.

Speaker #1: We also see from a consumer side that this is kind of not ranked as a key priority. There are more other factors, and otherwise we would also not see the bookings return, so if that was the number one question.

Speaker #1: So

Speaker #2: And we didn't do the promotion saying no, no prepayment. We are in the normal course of business.

Sebastian Ebel: We didn't do the promotion saying, "No prepayment." We are in the normal course of business.

Speaker #1: Exactly. So I think that is something that we can always discuss. We would always be kind of open, but we wouldn't like structural changes in the market for us, and that we currently don't see.

Mathias Kiep: Exactly. I think that is something that can be, we can always discuss. We would always be open, but we wouldn't like structural changes in the market for us and that we currently don't see. The working capital is more a result for us as a product booking rather than we want to take it as a big lever. On the cost cutting program, if we take a step back, our plans that we shared with you end of 2025, that we wanted to achieve around a third this year, another third next year, and then have that fully implemented during the course of 2028. I think Sebastian is fair that we currently see how can we further accelerate this. At the same time, I would say to bring another third next year is already a good result, and of course you can always do more.

Speaker #1: So the working capital is more a result for us as a product booking rather than we want to take it as a big lever.

Speaker #1: And on the cost cutting program, if we take a step back, our plans that we shared with you are for the end of 2025. We wanted to achieve around a third this year, another third next year, and then have that kind of fully implemented during the course of 2028.

Speaker #1: I think, Sebastian, it’s fair that we currently see how we can further accelerate this. At the same time, I would say to bring another third next year is already a good result, and of course you can always do more. But from a general direction, I think that corridor is currently prevailing.

Mathias Kiep: But from a general direction, I think that corridor is currently prevailing. Thank you.

Speaker #1: Thank you. Thank you very much.

Cristian Nedelcu: Thank you very much.

Speaker #3: Thank you. The next question is from Jörgen Kolb from Kepler Cheuvreux. Please go ahead.

Operator: Thank you. The next question is from Jurgen Kolb from Kepler Cheuvreux. Please go ahead.

Speaker #4: Yes, thank you very much indeed. Two questions. One maybe in terms of the average trip time—what have you seen from your guests? Are they maybe cutting... Just lost audio from Jörgen.

Jürgen Kolb: Yes. Thank you very much indeed. Two questions. One maybe in terms of the average trip time. What have you seen from your guests? Are they maybe cutting

Operator: I'm sorry. Just lost audio from Jurgen. Please stand by one second.

Speaker #3: please stand by one second.

Jürgen Kolb: Okay.

Speaker #4: okay.

Speaker #3: Jörgen, if you could continue. Thank you.

Operator: Jurgen, if you could continue. Thank you.

Speaker #4: Okay. Try that again. So quick comment on maybe from on on the average trip time by customers. Have you seen any material changes recently which may speak for for customers to go for another shorter trip maybe sometime in October or so comments here maybe.

Jürgen Kolb: Okay, try that again. Quick comment on maybe on the average trip time by customers. Have you seen any material changes recently which may speak for customers to go for another shorter trip, maybe sometime in October or so? Comments here maybe. On the cost savings program that has just been asked, maybe from a wider perspective, the transformation process that is ongoing, have you learned anything new that where you would say we need to strengthen that particular transformation part of the whole equation stronger? Is AI, for example, becoming an even stronger element? Where do you think you have to do more in the years, even after 2027, 2028, from what you've learned and what you've seen currently? Thank you very much.

Speaker #4: And on the on the cost savings program that has just been asked maybe from a wider perspective the transformation process that is ongoing have you have you learned anything new that where you would say we need to strengthen that particular transformation part of the whole equation stronger is AI for example becoming an even stronger element where do you think you have to do more in the years even after 2027 2028 from what you've learned and what you've seen currently.

Speaker #4: Thank you very much.

Speaker #2: On the average trips, I remember—hopefully right—that after COVID, it went from 10 to 11 days, and now we are back where we had been, maybe even slightly less. But if we take out—I mean, it's very much influenced by less long haul, where people tend to stay longer than on medium or short haul.

Sebastian Ebel: On the average trips, I remember, hopefully right, that after COVID it went from 10 to 11 days. Now we are back where we had been, maybe even slightly less. If we take out, it is very much influenced by less long haul, where people tend to stay longer than a medium short haul. If I take this effect out, it is now very stable, slightly below after COVID, but COVID was a one-day increase. May that suggest a second trip? I think the second trip is more depending on your personal possibilities, and what we have seen is that, like families, they have less money. The elderly generation who had good jobs have the money, and they go for the two, a second and third trip. Transformation process, the biggest change is AI, and the biggest change is in IT. You hardly need Java developers anymore.

Speaker #2: So if I take this effect out it's it's now very stable slightly below after COVID but COVID was a one day increase may that suggest a second trip I think the second trip is more depending on your personal possibilities and and and what we have seen is that like families they have less money they the elderly generation who had good jobs have the money and they go for the tour second and third trip.

Speaker #2: Transformation process the biggest change is is is is AI and the biggest change is in IT I mean you hardly need Java developers anymore you need you need AI manager and that is not only a significant source of efficiency gain it's also a a efficient a cost gain it's also a big thing in efficiency gain that you can increase development speed by by by a high factor.

Sebastian Ebel: You need AI manager, and that is not only a significant source of efficiency gain, it is also a cost gain. It is also a big thing in efficiency gain that you can increase development speed by a high factor. This is, for a traditional company, quite a tough work, but we have a great CIO, and that is why we are doing good progress. Global platforms. We are talking about that since three, four years, and now we are implementing and to accelerate to make sure that we have them also then finally in Spain and the small countries is important, too. To speed up is very important. Distribution, that is what I said is the biggest change.

Speaker #2: So this is for a traditional company, quite a tough work, but we have a great CIO and that's why we are making good progress.

Speaker #2: Global platforms I mean we are talking about that since three four years and now we are implementing and to accelerate to make sure that we have them also then finally in Spain and the small countries is important to so to speed to to to speed up is is there very important and distribution that's what I said is the biggest change.

Speaker #2: To accept that there are new sales channels which we hadn't seen two years ago which are driving the business and that the ecosystem building the ecosystem also with partners in retail is is is absolutely key because that will be the most important sales channel in the future and there some of our competitors the airline competitors had a big advantage when you offer your big seat only company and then you offer the letter you do it to an existing customer customer base.

Sebastian Ebel: To accept that there are new sales channels which we hadn't seen two years ago, which are driving the business, and that building the ecosystem also with partners in retail is absolutely key because that will be the most important sales channel in the future. There, some of our competitors, the airline competitors, had a big advantage when you're a big seat-only company and then you offer the latter, you do it to an existing customer base. That we didn't do, and that is why the move into the seat-only business, into the commercialization of the airline. What have we learned? To be more radical, to be more drastic, to accept the change.

Speaker #2: And that we didn't do and that's why the move into the seat only business into the commercializing nation of of of of the airline.

Speaker #2: So what have we learned to be more radical to me more drastic to accept the change and therefore I I said I think in the press call before the the only good thing or the big good thing of having this crisis now was that we had to do and we need to do things and had to do and need to do things even quicker and to be more radical than before.

Sebastian Ebel: Therefore, I said, I think in the press call before, the only good thing or the big good thing of having this crisis now was that we had to do and we need to do things even quicker and to be more radical than before.

Speaker #4: Got it. Super. Thanks very much, guys. Best of luck.

Jürgen Kolb: Got it. Super. Thanks very much, guys. Best of luck.

Speaker #2: Thank you. Thank you.

Sebastian Ebel: Thank you.

Operator: Thank you. This concludes the Q&A session, so I will hand back to Sebastian for any closing comments.

Speaker #3: Thank you. This concludes the Q&A session, so I'll hand back to Sebastian for any closing comments.

Speaker #2: Thank you. I was just wondering what you could do to help us to get to the different range of of of our guidance. Please book and go on vacation every customer is is is is welcome.

Sebastian Ebel: Thank you. I was just wondering what you could do to help us to get to the different range of our guidance. Please book and go on vacation. Every customer is welcome. I think we went through a challenging time, which was not easy to us. If you have 10,000 customers abroad and the only focus is to get them home, that has been a very tough experience to set the capacity right, to not panic, but to do good offers. That was a huge journey. As I said, maybe we could assume the strong comeback of the market earlier, but I think it was not really foreseeable. So we are happy that we managed this crisis.

Speaker #2: Now I think we went through a challenging time, which was not easy for us. If you have 10,000 customers abroad and the only focus is to get them home, that has been a very tough experience.

Speaker #2: To set the capacity right to not panic but to to to do good offers that was a huge challenge. The we we as I said maybe we could assumed the the the strong comeback of the market earlier but we we I think it was not really foreseeable.

Speaker #2: So we are happy that we managed this crisis I think we are all very happy and I'm very grateful to the team for putting more speed into the transformation to make sure when the market will come back that we hopefully benefit maybe even more than than than than than than others.

Sebastian Ebel: I think we are all very happy, and I am very grateful to the team for putting more speed into the transformation to make sure when the market will come back, that we hopefully benefit maybe even more than others. It has been a tough learning. We do see that the business is normalizing despite all the uncertainty in the world. I do not know where we would stand if there would not be the war from Russia against Ukraine, if there would not have been the Iranian war, what would happen if the Hispanics would not be scared to go on vacation to Mexico because they do not know if they come back in the US.

Speaker #2: It has been a tough learning we do see that the business is normalizing despite all the the uncertainty in the world. I don't know where we would stand if there wouldn't be the the the war from Russia against Ukraine if there wouldn't have been the the the Iranian war if what would happen if the Hispanos would not be scared to go on vacation to Mexico or see I don't know if they come back in in the US but we have to cope with it and that's one of the tasks which we see that we can do our homework we can do get better in what we do and that always helps us to be more resilient when it comes to these crisis and there is a huge growth potential as the market is in generally a growth growth market.

Sebastian Ebel: We have to cope with it, and that is one of the tasks which we see that we can do our homework, we can get better in what we do, and that always helps us to be more resilient when it comes to this crisis. There is huge growth potential as the market is in generally a growth market. The work is tough, but with some optimism, we think we will get some benefits out of that. Thank you for being with us, and it is always interesting what you write and a lot of learnings. Mathias?

Speaker #2: So, the work is tough, but with some optimism we have, we think we will get some benefits out of that. And thank you for being with us, and it's always interesting what you write, and a lot of learnings.

Speaker #2: Mathias?

Jürgen Kolb: Thanks a lot.

Sebastian Ebel: Thank you.

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