TUI earnings hurt by 737 MAX grounding2019|01:09
A mixed results day for travel operator TUI Tuesday (August 13). The Anglo-German firm saw Q3 sales rise 3.7% to $5.6 billion. But core earnings declined by 46% year-on-year. TUI's bottom line hit by the worldwide grounding of the Boeing 737 MAX, following two crashes in Ethiopia and Indonesia that killed 346 people. TUI was forced to replace the MAX with partly older and less fuel efficient planes, adding $161 million to costs. That dragged underlying core earnings down to $112 million for the year. TUI, like scores of other airlines, faces a long wait to see whether regulators allow the MAX to return to the air. But says robust business outweighs issues with the MAX. The travel firm stuck to its guidance for underlying earnings to fall up to 26% from last year. Chief Executive Fritz Joussen said efficiency drives and cost reductions have helped, But warned that uncertainty around Brexit and aviation overcapacity in Spain could hurt business.