Commodities

TUI says robust business outweighs 737 MAX grounding, upholds outlook

Credit: REUTERS/HANNAH MCKAY

European travel and tourism operator TUI said on Tuesday that robust business outweighed problems with the grounding of Boeing's 737 MAX jets in its third quarter and it upheld its earnings outlook for the full year.

FRANKFURT, Aug 13 (Reuters) - European travel and tourism operator TUI TUIGn.DE, TUIT.L said on Tuesday that robust business outweighed problems with the grounding of Boeing's 737 MAX jets in its third quarter and it upheld its earnings outlook for the full year.

TUI stuck to its guidance for underlying earnings before interest, taxes, and amortisation (EBITA) to fall by up to 26% from last year when it was 1.177 billion euros ($1.32 billion).

TUI 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.

Underlying core earnings (EBITA) declined by 46% year-on-year to 100.9 million euros, in particular due to the impact of 144 million euros in costs resulting from the grounding of the 737 MAX.

Group turnover rose by 3.7% to 4.745 billion euros.

($1 = 0.8935 euros)

(Reporting by Vera Eckert Editing by Michelle Martin)

((vera.eckert@thomsonreuters.com; +49 69 7565 1228; Reuters Messaging: vera.eckert.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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