TUI issues profit warning on €200m Boeing plane hit

TUI has warned investors of a €200m hit from the decision to ground all Boeing 737 MAX aircraft following two deadly crashes in five months.

The travel operator, which currently has 15 of the planes affected, issued a profit warning as it said that it had secured replacement planes to ensure customers suffered no disruption. Shares were 10% down on opening after it said underlying earnings were now expected to be 17% lower on the previous 12 months.last month when it warned that weaker profit margins in the UK would result in flat profits compared to the prior year.

TUI said it was to use some spare aircraft in its 150-strong fleet and lease others to minimise the temporary loss of the 737 MAX.Boeing is racing to restore confidence in the plane through some technical fixes after the new model was involved in October's Lion Air incident in Indonesia and the Ethiopian Airlines crash earlier this month.

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Tui blamed BA for bumping me off a flight when it made a mistake\r\nWe were told the airline had overbooked, but the travel firm didn’t pay for the seats in time I wonder how long it will be until they change their name again... Breaking .. Anna had flight issues on her holidays 😮😮😮 Never go on a package holiday
Source: The Guardian - 🏆 84. / 53 Read more »