The travel slowdown story returns every year: demand peaks, consumers pull back, and the whole sector loses momentum. What investors often miss is that some travel businesses are not being driven only by mood, but by scale and execution. Here, recent performance still points to steady demand and strong operating profit, not a sudden drop-off.

The more important part is capital return. The company is generating large free cash flow and is actively sending it back to shareholders through buybacks and a higher quarterly dividend. That is why the valuation debate exists: the market focuses on the fear of “cooling,” while the business is behaving like a strong cash generator.

Top points of analysis

• 2025 revenue: $26.9 billion, +13% y/y; bookings $186.1 billion, +12%.

• Operating profit 2025: US$8.83bn(+17%); net profit US$5.40bn.

• Free cash flow 2025: USD 9.09bn(+15%), operating cash 9.41bn.

• Net margin 20.1%, adjusted EBITDA margin (earnings before interest, taxes, depreciation and amortisation) 36…