Tui the holiday giant has taken a hit over the grounding of Boeing’s 737 MAX aircraft reporting a 46% drop in underlying earnings.
Earnings in the group in the third quarter plummeted to €100.9m after booking costs of €144m over the grounding of the 737 aircraft along with Brexit uncertainty.
The holiday giant now expects costs of around €300m for the full year.
Tui said, “We saw delayed customer bookings driven by the summer 2018 heatwave, the continued Brexit uncertainty and considerable aviation overcapacity to Spanish destinations continued in the third quarter.”
Summer bookings are down 1% year-on-year although this is an improvement since the first half when bookings fell by 3%.
The airline and markets business took a hit with tough trading conditions as well as Boeing 737. Tui had an underlying loss of €103.9m against earning of €37.2m a year ago.
Chief executive Fritz said, “Despite the challenging environment in 2019 to date, our underlying business remains robust, and we expect to deliver a solid performance in 2019, which, however, will not match the prior year’s result, as expected due to the grounding of the 737 Max.”