17-May-2019 11:32 AM

TUI Group reports outlook for summer 2019, MAX grounding to cost EUR200m

TUI Group reported (15-May-2019) the following operational outlook ahead of summer 2019:

  • Weaker travel demand persists, resulting in significant yield and margin pressure;
  • Reduced demand due to an extraordinary hot summer in 2018, slowdown of consumer confidence, Brexit uncertainty, shift in demand to the eastern Mediterranean and an overcapacity of flights to Spain;
  • 59% of the total 2019 summer programme has been sold compared with 62% at this time last year;
  • Bookings are down 3% with average selling price up 1% against strong comparatives;
  • The competitive pricing environment means that the average selling price increase is not at a sufficient level to cover cost inflation;
  • TUI's fleet, which comprises around 150 aircraft, currently includes 15 grounded Boeing 737 MAX for the UK, Belgium, the Netherlands and Sweden;
  • A further eight 737 MAX are scheduled for delivery after the lifting of the grounding. Assuming 737 MAX operations resume by by mid Jul-2018, the Group currently expects to see a one off impact on underlying EBITA of approximately EUR200 million in connection with the 737 MAX grounding. [more - original PR]

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