Tui has slashed its full-year profit forecast and suspended revenue guidance, citing mounting consumer caution amid the Middle East conflict. The Frankfurt-listed travel giant now expects underlying operating profit of €1.1bn to €1.4bn for the year to September, down from a previous range of €1.5bn to €1.6bn. Summer bookings are running 7 per cent below last year's levels as wary customers book at the last minute.

The war in Iran is weighing heavily on demand for destinations beyond the conflict zone. Travellers are shunning Turkey, Cyprus and Egypt in favour of western Europe, creating a geographic shift that hurts Tui's traditional sun-and-sea portfolio. The company warned that the new guidance "assumes no material escalation in geopolitical tensions, and that fuel supplies can be maintained".

Two of Tui's cruise ships trapped in Abu Dhabi and Doha after the conflict erupted — Mein Schiff 4 and Mein Schiff 5 — escaped through the Strait of Hormuz during a pause in hostilities on Sunday. The company had earlier repatriated about 5,000 passengers. Shares fell 2 per cent in morning trading. UK rival On The Beach also suspended guidance last month, while domestic holiday providers are anticipating a surge as travellers avoid Middle East air routes.