Tui: Boeing 737 Max almost destroyed us
Topics: TUI BOEING
The tour operator said Boeing’s move to ground the 737 Max fleet after two fatal crashes left it nursing a 29.5% plunge in pre-tax earnings to 691 million euros for the year to September 30.
It warned over a further 130 million euro impact from the grounding in 2019-20 but said this could rise by a further 220 million euros to 270 million euros if the aircraft does not return to service by the end of April.
However, Tui is being given a boost by the collapse of rival Thomas Cook in September.
It said it has seen a surge in new customers booking thanks to Thomas Cook’s demise with summer 2020 bookings up by 18% in the UK.
The group said this should help drive a return to profit growth over 2019-20, assuming the 737 Max grounding is lifted as expected.
It is expecting underlying earnings before interest and taxes to rise to between 950 million euros and 1.05 billion euros over the year ahead. ■