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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%.