02/11/2020
02/11/2020
TUI warned Tuesday that it no longer expected delivery of the Boeing 737 Max before September. The German tourism giant also reported deep losses in the first quarter of its staggered fiscal year.
“We no longer expect deliveries of Boeing Max in the current fiscal year” ending in September, said group boss Fritz Joussen when presenting the quarterly figures.
Between October and December, the group posted an operating loss of 147 million euros (157 million francs), usual in low season when it does not cover its fixed costs.
This loss of almost 80% higher than last year was however widened by a charge of 45 million euros due to the prolonged ground maintenance of the medium-haul aircraft of the American manufacturer since March 2019 after two accidents causing 346 deaths.
As this ban will last until the end of the 2020 financial year, the group anticipates additional annual costs “between 220 and 245 million euros”, against a range of 220 to 270 million euros previously.
The tour operator must rent other planes because it sells complete stays to its customers.
The losses related to the Boeing Max problem do not take into account any reimbursements from the American firm while negotiations are underway, specifies the tour operator.
The Hanover group forecasts adjusted operating profit (EBIT) between 850 million and 1.05 billion euros at the end of September, a range the lower limit of which has been cut down by 100 million euros since December.
After the bankruptcy of its rival Thomas Cook, TUI nevertheless notes a 14% growth in travel bookings for the summer and hopes to see this trend continue.
“The travel market in Germany and the UK is expected to shrink, but we will gain market share,” said Joussen.
The impact of the new Chinese coronavirus is hardly palpable: “We have no travelers in China during the low season and our core business is the sun and the beach, which we do not offer in China”, ensures a spokesperson with AFP.
Listed on the London Stock Exchange, the TUI stock jumped at 10:35 GMT by 11% to 9.56 pounds sterling.
ats, awp, afp
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