European tourism group TUI has reported a 46% decline in underlying quarterly earnings which it predominantly puts down to the grounding of Boeing’s 737 MAX jet. 10% of the group’s fleet of planes (15 in number) are 737 MAXs, while a further eight of these planes are currently on order, but until the grounding order is lifted, no delivery date can be provided.
It is anticipated problems with the 737 MAX will cost TUI in the region of €300 million for the 2019 financial year, current figures so far reflecting a loss of €144 million. TUI Chief Executive Fritz Joussen also indicated that many British travelers had been discouraged after sterling losses which had resulted from the election of the new U.K. Prime Minister, Boris Johnson. TUI posted underlying earnings before interest, taxes, and amortisation (EBITA) of €100.9 million in the quarter to the end of June, the third quarter of the group’s financial year. (€1.00 = US$1.12 at time of publication.)
