Travel industry faces headwinds: high fares and airport chaos

What happened: Tui, Europe's largest holiday operator, cut its profit forecast by €40m due to repatriating nearly 12,000 holidaymakers and staff from Iran. Budget airlines in Asia face rising fuel costs and potential fare increases, while travelers to the EU risk missing flights due to long queues at new security systems. Delta Air Lines' CEO warned of higher fares and lighter schedules, and Booking Holdings' stock has sold off on global travel concerns.

Market impact: The travel industry faces headwinds, with high fares and airport chaos driving down bookings and affecting companies like Tui, EasyJet, and Delta. Higher fuel costs and geopolitical tensions are pushing up prices, while new security systems are causing delays and missed flights. The travel sector's long-term growth prospects are being tested, with Booking Holdings' stock down this year.

What to watch next: Tui's full-year results on May 19 will provide further insight into the Iran conflict's impact. Delta's Q2 earnings on April 14 may offer more details on fare increases and schedule changes. Additionally, the EU's progress on streamlining its entry/exit system will determine if travel delays persist.