TUI Group takes $3-billion hit from Hurricane Melissa
TUI Group took a combined €16-million ($2.93-billion) hit to its earnings due to Hurricane Melissa’s impact on Jamaica, which saw the cancellation of flights and temporary closure of the Riu and Royalton hotels.
“We had to close hotels — the Riu hotels, the Royalton hotels — for the whole time the first quarter, and you will see it later. We also had to cancel a significant amount of flights from the UK to Jamaica,” said Sebastian Ebel, chairman and chief executive officer (CEO) of TUI AG, on the February 10 earnings call.
TUI indicated that the EBIT (earnings before interest and tax) for its hotels and resorts segment was €10 million ($1.83 billion) lower during the first quarter (October to December). There are currently four Royalton properties and seven Riu properties in Jamaica.
The German-based tour operator company provided the update on Tuesday to investors as it explained the significance of the disruption to its Jamaican business. The TUI Group owns 49 per cent of Royalton Hotels International Limited, which operates 57 Royalton resorts (formerly Blue Diamond Resorts) in the Caribbean and Mexico. TUI also owns a 50 per cent stake in joint venture entity RIUSA II S.A., which is the main management company that operates Riu Hotels and Resorts properties.
According to the Visit Jamaica website, the four Royalton properties are set to resume operations between August 25 to September 15 while the Riu properties fully resumed operations in December 2025. TUI noted in its September 2025 annual report that a tri-generation system was installed at Royalton Blue Waters in Trelawny, Jamaica, to improve energy generation.
Although TUI’s outlook for the second half of 2026 is clouded by the impact to the Jamaican market, Ebel noted, “That is not a concern to us because we are still in the ramp-up phase when it comes to Jamaica.”
TUI’s markets/tour offerings and airlines segment also had a €6-million hit to its EBIT from the natural disaster. As a tour operator, TUI will coordinate with airlines to arrange packages for its clients and handle payments.
“When it comes to consumer preference, one thing is clear for us. That’s why we invest so much in international sales activities. We want to make sure that if one market is weaker, we can get the customer from somewhere else,” Ebel said in response on customer preferences.
Air traffic at Jamaica’s two main international airports has declined for the last two months, with Sangster International Airport (SIA) having an average decline of 40.75 per cent on a comparative basis. SIA processed 284,200 passengers in January compared to the 262,200 passengers processed in December 2025. SIA is Jamaica’s busiest airport as it handles at least 70 per cent of arrivals in the island.
Hyatt Hotels Corporation told investors earlier last week that it was expecting to lose US$15 million ($2.33 billion) in gross booking fees for 2026 as its eight proprietary resorts remained closed until November 1. Investors in Express Catering Limited (ECL) have been given two delay notices on its second-quarter report (September to November) as the company seeks to restore its operations. This means that shareholders are not yet aware of the financial impact to ECL’s business. ECL is a concession operator at SIA with various brands like Dairy Queen, Cinnabon, Quiznos and Auntie Anne’s.