TUI Profit Takes a Hit From Max Grounding
Photo Credit: A close-up of one of TUI's Boeing 737 Max 8 aircraft. The company has taken a financial hit from the worldwide grounding. TUI
Skift Take
The Max grounding overshadowed a decent set of results. TUI will be hoping the safety issues are ironed out well in advance of next summer, the period when profits can be the most robust.
The enforced grounding of the entire Boeing 737 Max fleet following two fatal crashes, continues to cast a long shadow over the entire aviation industry.
German travel giant TUI Group blamed the shutdown for a slump in profit during the third quarter of its financial year thanks to a $162 million (€144 million) hit associated with the aircraft. Pre-tax profit fell 58 percent to $66 million (€59 million).
TUI had previously guided that the overall impact would be around $336 million (€300 million) should the grounding continue into the summer, which it has. So far during the year it has accumulated costs of $167 million (€149 million), meaning up to an additional $169 million (€151 mill
