Underlying earnings at Tui dropped by 46% year-on-year to €100.9m largely due to the grounding the Boeing 737 Max.
Total costs related to the grounding could be up to €300m in the full financial year 2019.
Issuing its third-quarter results covering the three months from April to June, Tui also said it saw “delayed customer bookings driven by the Summer 2018 heatwave, the continued Brexit uncertainty and considerable aviation overcapacity to Spanish destinations”.
Tui’s Holiday Experiences segment, comprising Hotels & Resorts, Cruises and Destination Experiences, delivered an increase in underlying earnings of 16.7% to €208.3m.
Overall turnover increased by 3.7% to €4.745bn.
Summer bookings saw average selling prices increase marginally by 1% but bookings were down 1%.
Tui chief executive Fritz Joussen said: “As expected and in line with our announcement made early this year, the Markets & Airlines business performance was also significantly impacted by the 737 Max aircraft grounding, ongoing since March, as Tui launched a number of measures including the securing of replacement aircraft capacity for the grounded aircraft until the end of the Summer season.
“Total costs related to the grounding will be approximately up to 300 million euros in the full financial year 2019. Furthermore, we saw delayed customer bookings driven by the Summer 2018 heatwave, the continued Brexit uncertainty and considerable aviation overcapacity to Spanish destinations continued in the third quarter.
“In the period under review, underlying EBITA amounted to -103.9 million euros, down on the positive prior-year comparative (previous year: +37.2 million euros), in particular due to the grounding of the 737 Max with an impact of 144 million euros.”
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