Tui warns of negative effect on profits after 737 MAX grounding
Tour operator Tui on Friday warned it would take a 200 million euro profit hit in 2019 due to the grounding of Boeing’s 737 MAX aircrafts in the wake of two recent deadly crashes of this mode of aircraft.
Tour operator Tui, whose fleet includes 15 737 MAX planes, a tenth of its total, expects flights to resume by mid-July at the latest.
Tui said on Friday it was “utilizing spare aircraft of its fleet, extending expiring leases for aircraft that were supposed to be replaced by 737 MAX aircraft, as well as leasing in additional aircraft” to soften the blow for travellers.
Tui said it now expects underlying earnings before interest, tax and amortisation (EBITA) to fall by 17 percent, having previously expected it to be flat compared with 2018.
Global airlines and travel groups have had to make contingency plans after 737 MAX planes were taken out of service following an Ethiopian Airlines disaster on March 10 that killed 157 people, five months after a Lion Air crash in Indonesia that killed 189.