Anglo-German tour operator TUI reiterates its outlook for lower profits

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Anglo-German tour operator TUI said its first-half losses deepened due to airline overcapacity for Spain and the grounding of its 15 Boeing 737 MAX planes, two issues that could plague the tour operator over the rest of the year.

The tour operator said there has been a year-on-year decrease in bookings, TUI said, although demand to travel to Turkey was growing. It added that while average prices are up 1%, margins are considerably lower than last year.

TUI said it also needed clarity over the status of its grounded planes by the end of May or it will take another hit on profit, and did not rule out cancelling 8 MAXs it has on order.

TUI also said that it was still feeling the effects from a summer heatwave last year, which forced firms to cut prices further to attract last minute bookings from Northern Europe.

The firm reiterated its outlook for lower profits, issued in March after Boeing suffered two fatal crashes that led to the grounding of the plane for all airlines.

 

Via Reuters

 

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