Originally Posted by
rog747
The 737 MAX crisis will seriously impact TUI’s financial results this year, the Company has said.
It is warning that the grounding of Boeing’s 737 MAX planes could cost it up to €300 million
The tour operator is basing its forecasts for the year on two scenarios, depending on when (or if) the 737 MAX returns to service this year.
1/ MAX returns before mid-August - loss 200m euros
2/ does not return this summer at all - loss 300m euros - A more likely scenario as TUI said they have to decide very soon whether to include the a/c in the schedules and training etc/
The TUI Group MAX fleet includes 15 of the grounded Boeing aircraft type, while a further eight had been due for delivery by the end of May – the start of the crucial summer holiday season in Europe.
The financial hit comes as a result of the cost of aircraft replacements, higher fuel bills and other disruption costs, and compensation to passengers.
Although the outcome of the grounding of Boeing’s 737 MAX aircraft is still uncertain, with the manufacturer still promising a fix soon for the problem, it is likely to dent TUI’s full-year earnings by between 20% and 26%, the tour operator says.
Spare planes?
The group’s forecasts are based on the MAX planes remaining out of action until mid-July.
The Easter, Whitsun and early to mid summer programmes will be the periods bearing the biggest impact.
TUI says it will use eight older 737s as well as spare and charter extra aircraft, which it promises will “guarantee” its customers’ holidays.
According to SKYLINER the MAX is grounded until October - and they also state that the FAA are suggesting an
additional 6 months. If that is the case the losses will be considerably worse.