) said an exceptional number of holiday bookings would help offset the impact of the Boeing 737 MAX grounding on its annual profit, enabling it to lift the bottom end of annual earnings guidance.
TUI is benefiting from the failure of rival travel company Thomas Cook last September, helping it to pick up new customers and gain market share, but at the same time it faces headwinds from the MAX grounding as it has to pay to lease other planes.The company said for the 12 months ended Sept. 30, it now expected underlying core earnings to be in the range of 850 million euros to 1.05 billion euros.
Joussen said that fears about the spread of Coronavirus were not impacting customer demand for holidays, but added that was partly because European customers did not tend to book holidays to Asia at this time of year.) 737 MAX was grounded last March after two crashes killed 346 people, and the aircraft is not expected back in service until at least mid-2020.
It said its updated annual profit guidance included a “certain level” of compensation it expected to receive from Boeing this year, but there were questions over how this would be structured.
Then they should take the green initiative and charge people by weight
German company should have gone for airbus. Now suffering....
It will drag on more TUI profit if the 737 Max is cleared to fly because nobody will want to fly on it. Passengers will boycott any airline/travel company operating the airplane.