TUI reported first-quarter operating profit of €77.1 million, comfortably beating the €66.7 million consensus estimate, driven by strong holiday experiences and its markets and airlines (M+A) segment. Despite the beat, shares fell nearly 4% in early German trade, primarily due to weaker performance in the M+A segment, which analysts attribute to seasonal headwinds and disruptions in Jamaica. Morgan Stanley's Jamie Rollo highlighted the volatility of the seasonally small Q1 period but noted the M+A segment's narrowing losses. Revenue rose 1.3% to €4.86 billion, aligning with consensus.

TUI reaffirmed its full-year guidance, expecting revenue growth of 2% to 4% and underlying operating profit growth of 7% to 10%. The market reaction underscores investor concern over the M+A segment's near-term trajectory despite the quarterly profit surprise.