TUI says robust business outweighs 737 MAX grounding
Travel operator upholds earnings guidance for the year
TUI’s underlying core earnings declined by 46 per cent year on year to €100.9 million. Photograph: Gareth Fuller/PA Wire
European travel and tourism operator TUI said on Tuesday that robust business outweighed problems with the grounding of Boeing’s 737 MAX jets in its third quarter and it upheld its earnings outlook for the full year.
TUI stuck to its guidance for underlying earnings before interest, taxes, and amortisation (ebita) to fall by up to 26 per cent from last year when it was just under €1.2 billion.
TUI chief executive Fritz Joussen cited efficiency drives and cost reductions, but noted uncertainty around Brexit, aviation overcapacity to Spain and delayed bookings in the summer.
Underlying core earnings (ebita) declined by 46 per cent year on year to €100.9 million, in particular due to the impact of €144 million in costs resulting from the grounding of the 737 MAX.
Group turnover rose by 3.7 per cent to €4.745 billion. – Reuters