TUI: lowers 2019 guidance after Boeing grounding
(CercleFinance.com) - German tour operator TUI warned on Monday that its full-year operating profit would be lower than expected following the grounding of Boeing's 737 MAX aircraft.
The tourism group said it now expects underlying EBITA rebased for 2019 to be down approximately 17%, compared with 2018 profit of 1.18 billion euros.
The group previously expected a "broadly flat" profit this year.
In a statement, TUI also noted "considerable uncertainty" around when the 737 MAX will resume service, with no dates having yet been announced by Boeing.
If flying 737 MAX planes is not resumed by mid-July, TUI will need to extend the leasing of additional aircraft until the end of the summer season, it added.
"We believe this intensifies the questions around the sustainability of the dividend," UBS analysts worried today.
As a result, the London-listed shares are currently down 2.5%.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The tourism group said it now expects underlying EBITA rebased for 2019 to be down approximately 17%, compared with 2018 profit of 1.18 billion euros.
The group previously expected a "broadly flat" profit this year.
In a statement, TUI also noted "considerable uncertainty" around when the 737 MAX will resume service, with no dates having yet been announced by Boeing.
If flying 737 MAX planes is not resumed by mid-July, TUI will need to extend the leasing of additional aircraft until the end of the summer season, it added.
"We believe this intensifies the questions around the sustainability of the dividend," UBS analysts worried today.
As a result, the London-listed shares are currently down 2.5%.
Copyright (c) 2019 CercleFinance.com. All rights reserved.