German tourism and shipping group TUI AG has abandoned its forecast for higher profits this year.
It blamed a fall in travel bookings to North Africa because of the uprisings there and a tough shipping environment.
TUI, which owns Europe’s largest tour operator TUI Travel, reported an 11 percent fall in quarterly underlying earnings and said annual profits will now only be in line with last years. The company had said in May it expected profits to rise.
“Earnings benefited from higher customer volumes and better average prices. On the other hand, they were impacted more strongly than expected by the unrest in North Africa,” TUI said.
The tourism division accounts for the vast majority of turnover and includes TUI Travel as well as TUI AG’s own hotel and cruise operations.
The uprisings particularly affected bookings from customers in France and TUI’s hotels in Egypt, the group said.
London-listed TUI Travel is, however, coping better than rival Thomas Cook and reported solid trading in the UK on Wednesday.