|Bid||481.90 x 0|
|Ask||482.20 x 0|
|Day's Range||473.70 - 490.60|
|52 Week Range||218.00 - 1,090.00|
|Beta (5Y Monthly)||1.08|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||0.45 (16.85%)|
|Ex-Dividend Date||Feb. 12, 2020|
|1y Target Est||15.65|
Europe's biggest travel company, TUI Group, said it has struck a deal with Boeing for compensation and deferred deliveries of the grounded 737 MAX jet, boosting its finances as it seeks to survive the coronavirus pandemic. Shares in TUI rose 7% on news of the deal. The company's London-listed shares have halved in value since the beginning of the year, after TUI was hammered by the coronavirus outbreak which halted its activities in March.
The European Union on Wednesday pushed to reopen internal borders and restart travel, although the prospects of reviving tourism ahead of the summer season were mixed as public fears over health and safety weigh heavily during the coronavirus pandemic. With the tourism sector, which usually accounts for about a tenth of the bloc's economy, now decimated by the pandemic, the EU's executive Commission urged a return to "unrestricted free movement", albeit with safety measures such as face masks on airplanes.
(Bloomberg Opinion) -- Anyone up for a beach holiday right now? The answer is probably a resounding yes, anything to escape lockdown and incessant worrying about the coronavirus outbreak and imminent global recession.But would you actually book one for this summer or even the fall? There the answer is more complicated, as it becomes painfully clear that our next vacations will be close to home and overshadowed by concerns about health precautions.There are the optimists: Almost three-quarters of the people who were due to sail in May, but had their dream cruise canceled by British operator Saga Plc, chose to rebook at a later date. The pessimists: More than half of Americans surveyed by Destination Analysts agreed their next vacation would be a “staycation.” Those organized souls who planned their July Fourth escapes before Covid-19 was upon us are playing wait-and-see. French hotel giant Accor SA has seen less than 10% of reservations for July and August scrapped. But it’s still bracing for occupancy rates of 25-30%, as opposed to 75%, when travel begins againWhat’s clear is that we’re all going to be expecting something different for our next getaway: hotels with detailed Covid-19 symptom checks, abundant hand sanitizer, rigorous disinfecting and bars and restaurants configured for social distancing.The $5 trillion global tourism industry has already taken a huge hit from the pandemic, and it’s not over. Figuring out how to cater to tourists and business travelers in this new era will throw up huge challenges for even the most flexible and deep-pocketed companies. The about 35% gain in the Stoxx 600 Travel & Leisure Index since March 18 looks overly optimistic.In the near term, consumers may be reluctant to crowd into airplanes or return to busy tourist hot spots. In response, European discount carrier EasyJet Plc said it’s likely to leave middle seats empty on aircraft with a three-seat configuration, at least when it first resumes flights. The cruise industry, a haunting symbol of the Covid-19 outbreak, is likely to promote smaller vessels, which are more easily adapted to social distancing, a robust on-board medical staff and promises to fly holidaymakers home at the first whiff of a problem. Flexible booking policies without any deposit may become the norm. If all this fails to tempt, then deep discounts will be necessary.This season may be a washout but there are some signs things will pick back up. Dart Group Plc said on Friday that bookings were still coming in to its Jet2 leisure travel business for late summer. EasyJet said winter bookings were significantly ahead of this time last year. Even if some of this may be rescheduling of trips that were canceled, it illustrates people’s eagerness to travel once again. To capture pent-up demand, tour operators including European giant TUI AG and Jet2 have launched their 2021 summer holiday programs early.It may still be a hard sell depending on the destination. For Italy, Spain and France, as well as New York City, the repercussions of having been the epicenter of the pandemic at some point may linger even longer. It took about 18 months for travel to Paris to recover completely after the harrowing 2015 terrorist attacks.With international flights grounded and foreign tourists unwelcome in most places, it’s impossible to say how soon we can start trotting the globe again. The big luxury and event-oriented hotels, such as those operated by Marriott International Inc. and Hyatt Hotels Corp., are more dependent on international travelers than their more downmarket peers. Companies will likely shore up offerings for domestic tourists. For example, Saga, which caters to the 50s-and-over crowd, already offers cruises around the British isles. This business could be expanded if customers are nervous about venturing further afield. In more thrifty times, people tend to seek out no-frills lodging. In the U.S., Wyndham Hotels & Resorts Inc., has the most exposure to the economy and mid-scale sectors, with brands such as Super 8, Ramada and Days Inn, according to Brian Egger, an analyst at Bloomberg Intelligence. In Europe, Whitbread Plc has the Premier Inn chain in Germany and the U.K., where 80% of its properties are outside of London.Airbnb Inc. may be a big beneficiary if tourists seek out private residences to avoid mingling with too many people in hotel lobbies, elevators or restaurants. The trailblazer for the sharing economy may provide more options in smaller towns or isolated regions. But as with hotels, people must have confidence in hosts’ hygiene standards.And as I have noted, some sectors, such as cruising, may struggle to attract customers other than their most ardent devotees. Carnival Corp., operator of the now infamous Grand Princess, said that as of March 15 bookings were down even for the first half of 2021. It’s hard to say just how bad and enduring the impact from this new coronavirus will be. For those companies that manage to adjust, they can expect to be rewarded with some positive long-term prospects, as more people enter the middle class around the world and an aging population has more leisure time. But it will take much more than pictures of idyllic getaways to woo them.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
TUI Group <TUIT.L>, Europe's biggest tour operator, said beach holidays for its British and Irish customers would be cancelled until mid-May due to travel restrictions caused by the coronavirus pandemic and uncertainty about when those will end. The United Kingdom changed its travel guidance on April 4, advising against all non-essential global travel indefinitely. Previously Britons had been told to avoid global travel for 30 days from 17 March.
(Bloomberg Opinion) -- ↵The coronavirus will leave no industry untouched but the impact is particularly acute for companies that depend on prompt payment from customers to fund their businesses.In sectors such as car making and the travel industry, it’s common for companies to hold little inventory and settle with suppliers long after they’ve received payment from their customers.As a result they often have what’s called negative working capital: Their trade payables exceed the sum of inventories and customer receivables. In other words, they owe more to their suppliers than their customers owe them.When revenues are growing, this is a big advantage. Cash pours into the business which can be used to fund investments.Customer payments and deposits effectively serve as a free form of finance and that float gets bigger as sales expand.It’s certainly a very efficient way to run a business — Amazon.com Inc. excels at it — but negative working capital can make a balance sheet look stronger than it really is. That’s because the effect is reversed when sales suddenly slow down or shrink. Suppliers still need paying but there’s little new customer cash coming in. As a result, cash rushes out the door. This is what threatens to happen now that much of the world is cooped up at home due to coronavirus.“In periods in which our vehicle shipments decline materially we will suffer a significant negative impact on cash flow and liquidity as we continue to pay suppliers for components purchased in a high volume environment during a period in which we receive lower proceeds from vehicle shipment,” Fiat Chrysler Automobiles NV warned in its annual report. A rule of thumb is that French, Italian and U.S. automakers have negative working capital, while their German peers do not. A six-week production hiatus caused by strike action lowered General Motors Co.’s free cash flow by $5.4 billion.Optimizing working capital has been a key focus for carmaker Peugeot SA and boss Carlos Tavares repeated the trick when he acquired Opel/Vauxhall from GM.Like merger partner Fiat, Peugeot has now been forced to shutter its European car plants. If sales slump for a prolonged period, its 17 billion-euro ($19 billion) cash buffer could dwindle.Tour operators are accustomed to large swings in working capital: They typically get paid by customers ahead of the busy summer season and pay their suppliers afterwards.(1) Bank overdrafts can tide them over during the winter period when cash tends to be lower.Still, a sudden slowdown in demand can upset those calculations, as Thomas Cook Group Plc discovered last year. Customers delayed bookings, suppliers tightened credit terms and the U.K. tour operator went bust.Shares in rival TUI AG slumped this week after it suspended the vast majority of its travel, cruise and hotel operations and said it would apply for state-aid guarantees. The company has 1.4 billion euros in cash and available banking facilities but this is far exceeded by a deeply negative working capital position — at the end of December it held about 2.9 billion euros of advance payments from customers.The cash spring, once a big advantage for many firms, could be about to recoil. (1) They are however required to make pre-payments to hotelsTo contact the author of this story: Chris Bryant at email@example.comTo contact the editor responsible for this story: Chris Hughes at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg Opinion) -- In the wake of the coronavirus, enticing people to set a course for adventure on a floating mega-palace will be a difficult proposition.The public image of cruises, which for many older people are still associated with the 1970s American TV series “The Love Boat,” has been tarnished by the pandemic. On Thursday, Carnival Corp. said it would suspend all voyages by its Princess Cruises division, which suffered the only known outbreaks of coronavirus at sea, for 60 days. Cruising divides opinion at the best of times. Fans see it as a fun, hassle-free and cost-effective way to explore several often sun-drenched destinations in one go, particularly when food, drinks and entertainment are thrown in. For others, it conjures up a horror of claustrophobia, seasickness and way too much proximity to other holiday makers. Headlines about passengers stuck on ships turned away from ports for fear there may be a deadly virus on board will only serve to reinforce their aversion.The images of Carnival’s majestic Grand Princess, a behemoth that spent days circling the waters around San Francisco because 21 passengers tested positive for the virus, will be particularly damaging. As will an unprecedented warning from the U.S. State Department not to take cruises because they hold an elevated risk of Covid-19 infection and potentially landing in quarantine on a foreign shore. After all, North America is the world’s biggest cruise market by some distance.It’s hard to see how a $60 billion industry that’s already made such an effort to remake its image as more than a retirement pastime can easily overcome this hit. It still depends in large part on passengers over 50 who may be more likely to think twice getting on board. And before embarking, those over 70 may even be required to present a doctor’s note that they have a clean bill of health, not exactly reassuring for a carefree getaway. But first for the immediate pain. The global pandemic could hurt the cruise industry worse than both the 9/11 terrorist attacks in 2001 and the financial crisis of 2008-2009, according to Brian Egger, an analyst at Bloomberg Intelligence. Even before Carnival’s decision to suspend its 18 Princess vessels, he was estimating that revenue yields, a measure that reflects both pricing and occupancy leverls, could fall by as much as 20% this year.Richard Clarke, an analyst at Bernstein, estimates that most bookings for travel packages are down around 40% across the market. The drop off in cruise demand may be even worse.That’s a worry for the big U.S. operators — Carnival, Royal Caribbean Cruises Ltd. and Norwegian Cruise Line Holdings Ltd. — as well as TUI AG, the German tour operator that’s been developing its ocean-vacation arm to give it an edge against rivals. Carnival’s response is a dramatic one. But more lines could take this option, both to stem losses from operating half-empty vessels and to give them a very deep clean as a way to reassure holidaymakers that they are safe once the pandemic has subsided. On Friday, travel-to-insurance group Saga Plc said it was spending its cruise operations, cutting profit by up to 15 million pounds ($18.9 million).Alternatively, cruise operators could look to continue filling vessels with deep discounts. Analysts at Nomura have estimated that pricing could drop by at least 10% this year. That may encourage enthusiasts to take to the high seas, but at a lower profit. Yet as the pandemic spreads, and people around the world question how far from home they’re willing to travel, it’s unclear just how many takers there will be. And that’s before any official travel restrictions, such as President Donald Trump’s decision to temporarily curtail European travel to the U.S. It’s understandable that shares have tumbled since the coronavirus took hold.To weather the shock, Royal Caribbean and Norwegian have boosted liquidity in recent days. Even so, Royal Caribbean looks to face the most difficult challenges ahead, with net debt reaching 3.7 times Ebitda at the end of this year, according to the Bloomberg consensus of analysts’ estimates. That’s compared to Norwegian at 3.3 times and Carnival at 2.5 times. The industry may recover from the latest shock. After all, demand returned after the Costa Concordia disaster in 2012, when 32 people died after the cruise ship ran aground off the Italian coast. But it may never be the same again.Previous contagious outbreaks had prompted the industry to tighten hygiene standards. It will have to elevate them further given the spotlight on the dangers of thousands of people living in close quarters. Additional steps, such as more stringent screening of guests and staff, could raise expenses. Cruise lines will likely look methodically to ensure they have agreements with all ports on every itinerary so ships with sick passengers can dock. Putting such arrangements in place would take time and involve more cost.With the focus on the heightened risks faced by older travelers, especially those with underlying health conditions, cruise operators will need to intensify efforts to capture younger consumers, with all the associated marketing expense and investment in amenities to attract them. TUI Cruises is already focused on family vacations, while Walt Disney Co. has plans to almost double its fleet to seven ships by 2023. Virgin Voyages, Richard Branson’s over-18s luxury cruise offering, recently took delivery of its first liner, boasting Instagrammable spots, yoga classes and a festival-like lineup of shows, although it has postponed the Scarlet Lady’s maiden voyage.Winning over young adults won’t necessarily be easy. Cruise liners are associated with a list of environmental problems. So while “cruise shaming” hasn’t yet caught on, expect more focus on the industry’s impact on the planet, as well as its role in over-tourism in cities from Barcelona to Venice and Copenhagen.For the time being though, cruise operators’ main focus will be keeping passengers healthy and making sure that any ships that do sail are as full as possible. With ever more alarming headlines, that means more struggles for the Love Boat.To contact the author of this story: Andrea Felsted at email@example.comTo contact the editor responsible for this story: Melissa Pozsgay at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Egyptian tourism entrepreneur Hamed El Chiaty has bought a 3.4 percent stake in TUI Group. El Chiaty, who, along with his family, also owns travel conglomerate Travco Group, said he knew and trusted TUI's management team. He noted that the company's move from a traditional tour operator to an owner of hotels and cruise ships […]
On March 2, an employee at Travel Republic, a large online travel agency based in the UK and owned by Dnata, tested positive for coronavirus. The company acted swiftly, closing the office the following morning, undertaking a deep clean, and implementing flexible working arrangements for staff. A day later the office reopened. “Staff have been […]
(Bloomberg Opinion) -- The biggest coronavirus risk to retailers on both sides of the Atlantic may turn out to be empty stores, rather than empty shelves.As the outbreak has spread from Asia to Europe and the U.S., concern has shifted from the impact on supply chains because of closed Chinese factories to the potential of the deadly disease to put a sudden brake on consumer spending.While fashion chains and do-it-yourself merchandisers rely less on China today than they did a decade ago, it’s inevitable there will be some supply problems. The country is still the world’s biggest clothing exporter, and it makes everything from paddling pools to power tools. Associated British Foods Plc, owner of cheap chic fashion chain Primark, and U.S. athletic apparel maker Under Armour Inc. have recently warned of the risks.A full understanding of the impact will only come later. Many spring fashions and home furnishings were shipped before the outbreak, and there is evidence that factories are returning to work. But the closures in February will mean that some orders for the summer and potentially even the back-to-school shopping seasons may not reach stores in time. For apparel retailers this is a particular risk. If say, pastel hued coats designed to be worn in the spring arrive when the weather is warmer, those coats will need to be discounted to sell.But some canceled orders may be a blessing.The worry now is not that shoppers won’t find what they are looking for, it’s that they won’t hit the mall and spend time browsing for it in the first place. Almost half of U.K. retailers surveyed by consultancy Retail Economics and law firm Squire Patton Boggs had already seen a negative impact on their sales, with three quarters expecting revenue to be hit if the virus continues, according to a report published on Wednesday.This adds to anecdotal evidence, from some retailers finding trading tougher than expected to others seeing footfall weaken. In the U.K., traffic to stores held up until Thursday, but as bad news about the virus intensified, shopper numbers dropped, particularly in malls. Even for a Tuesday evening in March, London’s Oxford Street seemed unusually quiet yesterday. Expect the same pattern in the U.S. as new cases pop up in new cities. It would be understandable if people hesitate to head to the mall and avoid lingering at the supermarket after filling their cart with hand sanitizer, toilet paper and food staples for a month. After all, employers such as Amazon.com Inc. are telling workers to limit non-essential travel and governments in countries like France are banning events for more than 5,000, leaving worried citizens to wonder how many people is too many people in one place. And with Covid-19’s symptoms silent for a long incubation period it can be tempting to avoid public spaces altogether. Reasons for splurging at the shops are also evaporating as major events get canceled or delayed, and by extension people contemplate skipping parties, weddings or graduations. For example, tech giants including Facebook Inc. and Twitter Inc. have pulled out of the South by Southwest tech conference in Austin, Texas. That means purchases that would have been made — from trendy sneakers to wear at SXSW to the suit to impress at any number of industry conferences — may be lost.Travel is another boon to spending that risks being sapped. Tour operator TUI AG said holiday bookings have weakened over the past week. Unless they come back later on, that means fewer bikinis and tubes of suntan lotion filling shopping carts. If the problem is consumers hibernating, then online retailers such as Amazon and Britain’s Asos Plc, could be protected. But if the issue is a lack of stimulants to spending, no one will be spared. There’s also the knock on effect on restaurants and bars if consumers stay home.There may be some offsetting factors. For example, Brits and Americans have been bulk buying essentials in retailers such as Costco Wholesale Corp. Long-life milk, nappies and bottled water are all in demand at supermarkets. At the other end of the spectrum, shares in Peloton Interactive Inc. defied the market rout last week on hopes that more fitness fanatics would work out at home, rather than go to the gym.Any short-term silver linings will be lost if consumers simply hunker down. The risk of a pandemic, as well as market uncertainty or worse, are hardly conducive to splashing out. Britons had started spending again after pulling in their purse strings during the impasse over their departure from the European Union. In contrast, U.S. consumer confidence has remained remarkably robust. But cracks are emerging. U.K. consumer confidence dropped for the first time in five months, according to YouGov and the Centre for Economics and Business Research. Meanwhile, in the U.S., the Bloomberg Weekly Consumer Comfort Index suffered its largest one-week drop since late October in the week ending Feb. 23.As with trading, it’s hard to separate out what’s due to the virus and what’s down to other factors. But either way, it’s a timely reminder that faced with an epidemic, consumer demand also isn’t immune.To contact the author of this story: Andrea Felsted at email@example.comTo contact the editor responsible for this story: Melissa Pozsgay at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
European travel giant TUI Group has outlined a series of measures it intends to take to cope with the potential disruption to its holiday business from the coronavirus outbreak. The Hanover-headquartered company said it had so far only seen a “marginal effect” on its operations following a strong start to the year. Nevertheless with the […]
(Bloomberg Opinion) -- The deadly coronavirus has spread to European holiday destinations. That’s of huge concern to a travel industry that will soon be gearing up for its peak summer season.When the outbreak emerged in China, worries centered on airlines and hotels in that region, as well as valuable outbound tourism from the country. But now the disease has shown up in Italy, and notably in Spain’s Canary Islands, shorter haul European travel is being drawn into the fray.Shares in TUI AG, Europe’s biggest travel operator, have fallen about 18% this week, while those of the budget airlines EasyJet Plc and Ryanair Holdings Plc are down by about 20%.Already reeling from the “flight shame” phenomenon, which has seen some environmentally conscious consumers shunning air travel, and disruption from grounded Boeing 737 Max jets, a global viral outbreak will have a profound effect on the confidence of travelers and vacationers everywhere.Europe’s peak period for early holiday bookings, stretching from Boxing Day to the third week of January, ended just as the virus was emerging. The first Saturday in January is known as “Sunshine Saturday,” when holidaymakers hit the travel agents or, more probably, buy their flight and accommodation on the internet.But even booked trips are at risk of cancellation as Europeans digest what’s happening in the Spanish holiday island of Tenerife, where 700 people have been contained in a hotel after several guests were found to have the virus. What’s more troubling for the travel industry is that most of their profit doesn’t come from early bookers, but rather from people who are buying holidays from now onward.The outbreak in northern Italy is equally difficult for the airlines (it is a big part of Ryanair’s business) and travel companies, but that country tends to offer more upmarket destinations. The Canary Islands and mainland Spain — where some cases have also been identified — are firmly in the middle and mass markets, so the impact there could be bigger. TUI AG’s RIU hotel chain has a strong presence in Spain and the Canary Islands.Cruises, obviously, have been hit hard by the outbreak, given the pictures of passengers quarantined on ships being beamed around the world. That’s another big worry for TUI, which which has been building its ships business. Analysts at Morgan Stanley estimate that the volume of bookings has fallen by double digits across the whole of the cruise market in the U.S. and Europe in recent weeks.If the outbreak is contained relatively soon, the effect on tour operators might be short-lived. Holidaymakers who have held off from booking should come back to the market. But if infections continue beyond May, as looks increasingly likely, the industry’s problems will intensify.At this point, the travel groups are usually snapping up airline capacity for the peak summer months. As they make all of their profit during this period, a prolonged outbreak now would be doubly damaging. One poor summer season in 2018, because of a European heatwave, helped to sink the British travel giant Thomas Cook. That company was also burdened by more than 1 billion pounds ($1.3 billion) of debt, but it’s fate underlines just how dependent the travel industry is on the traditional beach getaway.To contact the author of this story: Andrea Felsted at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
TUI Group is ramping up capacity for its summer 2020 holiday program as it looks to take market share from the bankrupt Thomas Cook in a number of markets. The Hanover-headquartered company reported a strong improvement in trading for the upcoming season with revenue and passenger numbers all making double-digit increases. To cope with the […]
TUI Group is selling Hapag-Lloyd Cruises to its joint venture with Royal Caribbean Cruises in a deal worth $1.3 billion (€1.2 billion). The headline figure is the enterprise value with a net cash consideration of around $767 million (€700 million). TUI will put the proceeds towards its previously announced digital transformation as well as to […]
January is a big month for European travel companies. It’s the time of year when people start booking their summer holidays and importantly when tour operators can make a decent profit margin on sales. This year the landscape is slightly different. One of the most well-known brands, Thomas Cook, has mostly disappeared from the market. […]
Global tourism giant TUI over the last few years has placed a greater emphasis on its own exclusive content. In some ways, this has helped insulate it from the factors that led to the demise of Thomas Cook, but it still has a ways to go. In its most recent earnings update, it floated the […]
TUI AG (ETR:TUI1) last week reported its latest annual results, which makes it a good time for investors to dive in...
Losing one of your biggest competitors is usually a good thing for a business, but in TUI Group’s case things are more complicated than they seem. On paper Thomas Cook’s bankruptcy earlier this year left a gap in many European markets — one that TUI and others were hoping to fill — the only problem […]
Holiday company TUI Group said the grounding of its Boeing 737 MAX planes would continue to drag on profits, with a hit of up to 400 million euros possible in its 2020 financial year if the jet does not come back into service by May. The company, whose main rival Thomas Cook went out of business in September, said on Wednesday that earnings forecasts for the 12 months to end-September 2020 assumed a 130 million euro hit from the grounding.
Holiday company TUI Group <TUIGn.DE> said the grounding of its Boeing <BA.N> 737 MAX planes would continue to drag on profits, with a hit of up to 400 million euros possible in its 2020 financial year if the jet does not come back into service by May. The company, whose main rival Thomas Cook went out of business in September, said on Wednesday that earnings forecasts for the 12 months to end-September 2020 assumed a 130 million euro hit from the grounding. "April is what we expect," CEO Fritz Joussen told reporters.
TUI Group's annual earnings fell 26%, in line with a previously downgraded outlook, as Europe's biggest holiday company paid the price for its Boeing 737 MAX planes being grounded. The company, whose main rival Thomas Cook went out of business in September, said that it expected earnings to return to growth for the 2020 financial year, although it warned that the 737 MAX grounding would impact it by at least 130 million euros next year. TUI posted annual core earnings (EBIT) of 893 million euros in the 12 months to Sept. 30, and guided that earnings next year would be in the range of 950 million euros to 1.05 billion euros.
For an online player like On the Beach, Thomas Cook's collapse was both good and bad. On the one hand, it lost a supplier of flights to summer sun destinations — its core market — costing the company around $9.9 million (£7.7 million) mostly in customer refunds and reducing the number of airline seats available […]
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like...