TUI says 737 MAX grounding continues to drag on profit

LONDON (Reuters) – European holiday company TUI (L:) said it was expecting the grounding of the Boeing (N:) 737 MAX aircraft to cost it an additional 220 million euros to 245 million euros over its 2020 financial year, as the U.S. planemaker’s woes continue to drag on profit.

Reporting first quarter results on Tuesday, TUI said that it was able to partly offset the cost of the grounding of the aircraft by strong demand for its holidays and flights, and a “certain level” of compensation from Boeing.

The company said for the 12 months ended Sept. 30, it expected underlying core earnings (EBIT) to be in the range of 850 million euros to 1,050 million euros, compared to the 893 million euros it reported in the previous period.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.