Tui reaffirms earnings outlook for full year

Tui has said robust business has outweighed problems with the grounding of the Boeing 737 Max in the third quarter.

As a result, the European travel and tourism operator upheld its earnings outlook for the full year.

Tui stuck to its guidance for underlying earnings before interest, taxes, and amortisation to fall by up to 26 per cent from last year – when it was €1.177 billion (£1.09 billion).

Chief executive Fritz Joussen cited efficiency drives and cost reductions, but noted uncertainty around Brexit, aviation overcapacity to Spain and delayed bookings in the summer as negative trends.

The grounding of the 737 Max will cost €300 million, Tui added.

Underlying core earnings declined by 46 per cent year-on-year, to €101 million, in the third quarter, in particular due to the impact of €144 million in costs resulting from the grounding of the 737 Max.

Group turnover rose by 3.7 per cent, to € 4.745 billion.

Source : Breakingtravelnews