Wednesday, 15 May 2019

More losses at Tui as Boeing 737 Max groundings bite

More dramatic losses at the holiday firm Tui as the Boeing 737 Max groundings bite into the holiday company's finances.  In the six months to 31st March, the losses rose from £148m to £261m, blamed partly on the 737 Max problems, but also on tough market conditions, Bexit uncertainty, the UK's warm weather last year and rising competition.

Tui boss Fritz Joussen insists the firm is on a sound footing, despite twice having to issue profits warnings over the 737 groundings, 'Tui is on track, both strategically and operationally, and is well positioned. That is why 2019 will be another solid year." he said.

'Our core businesses with our own hotels, cruises and destination experiences and activities remain strong and currently deliver around 70 per cent of our earnings.

'Tui will emerge as a stronger, more efficient and more profitable group from the current consolidation of our sector in Europe.'

Tui has 15 Boeing 737 Max aircraft across its fleet,  with a further eight of the type on order from the US manufacturer.

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