Tui has reported a 10 percent drop in revenue from United Kingdom customers booking summer holidays, contributing to an overall 7 percent decline in summer bookings compared with last year. The travel company said higher jet fuel prices and geopolitical tensions have made consumers more cautious, although it does not expect immediate fuel shortages.

Concerns have grown over disruptions to oil and liquefied natural gas supplies due to instability in the Middle East, particularly around the Strait of Hormuz. While some airlines have raised ticket prices in response to rising fuel costs, others have reduced capacity to encourage demand from hesitant travellers.

For the first three months of the year, Tui reported a 40 million euro hit to profits linked to the conflict involving the United States, Israel and Iran, including repatriation and welfare expenses. The company posted an underlying loss before interest and tax of 188 million euros for the quarter, an improvement on last year.

Analysts said travellers are delaying bookings rather than cancelling holidays altogether, suggesting demand has softened but not collapsed. Greater clarity over alternative fuel supplies could help restore consumer confidence ahead of the peak summer season.