Tui says the war in Iran and pressure on household budgets are prompting more people to delay holiday bookings until the last minute, creating uncertainty for Europe’s largest travel company. The conflict has already cost Tui €60m, while weaker demand, high fuel prices and intense competition contributed to a sharp fall in quarterly profits.

Two cruise ships carrying 5,000 customers were stranded in the Gulf when the Strait of Hormuz became unusable, leaving them out of service for 12 weeks and costing €40m in repatriation and lost revenue. Pretax profit fell 43% to €153m between April and June, customer numbers slipped 3% to just under 10 million, and the markets and airlines division recorded a €17m loss; however, summer demand improved in the previous four weeks. Tui also said climate change is encouraging more travel outside peak season, supported by hotels investing in cooling and heating.