Hanover-based tour operator TUI released a profit warning on Friday, announcing that the grounding of the Boeing 737 Max aircraft could cut earnings for the year by 17%.
The company, which owns 15 of the aircraft, previously said that earnings for 2019 would be “broadly flat”. In 2018, Tui reported earnings of €1.2 billion.
On Friday TUI shares were trading 6.4% down on the London Stock Exchange.
TUI also said that it expected earnings would decrease by 26% from 2018, up to EUR300 million, if flying of the 737 MAX would not resume by mid-July.
The 737 Max planes – one of Boeing’s newest aircraft – were grounded after two fatal accidents in five months, raising doubts over its safety.
With a total of 150 aircraft, TUI’s 737 MAX planes account for one in 10 of its fleet. The travel company has ordered a further eight of the planes, which are scheduled for delivery by the end of May.