TUI results threatened by 737 MAX issues

0 mins. to read
TUI results threatened by 737 MAX issues
turbo83 /
Master Investor Magazine

Never miss an issue of Master Investor Magazine – sign-up now for free!

Read the latest Master Investor Magazine

The price of shares in the FTSE 100 consumer travel firm TUI (LON:TUI) has dropped by 4.94% to 731.80p (as 0f 14:12 GMT) after it provided an update on the grounding of the 737 MAX air frame. The 737 MAX makes up 10% of TUI’s air fleet and there is currently no date for them to return to service. As a result, the company has taken precautions to ensure that it can honour all bookings through to mid-July, but as a result full year EBITDA is expected to drop by roughly 17% due to the one-off costs involved.

If the return to service comes later and the entire summer season has to be covered, EBITDA will instead take a hit of around 26%.

Comments (0)

Leave a Reply

Your email address will not be published. Required fields are marked *