The impact of leaving 737 MAX airplanes on land and at 300 million for the entire year are 144 million
TUI Group recorded some ‘red numbers’ of 320.1 million euros during the first nine months of its fiscal year, ended June 30, which means multiplying by 2.2 times the losses recorded a year before 140.3 million euros, negative result adjusted in accordance with the new accounting standards.
In the third fiscal quarter, the largest tourist group in the world – which has among its investees the Spanish hotel company RIU – achieved an attributed profit of 21.7 million euros, which is 84.6% less than in the same period of the previous year. Its revenues grew 3.7%, to 4,576 million euros.
«Despite the challenging environment in 2019 to date, the underlying result of the business remains strong and we expect to offer a solid return for the year that, however, will not coincide with that achieved the previous year, as expected due to the impact of leave the 737 MAX aircraft on the ground, «said CEO, Fritz Joussen, on the occasion of the presentation of the results.
In its first nine fiscal months, it billed 11,421.4 million euros, 2.5% more, while in the last quarter revenues totaled 4.745 million euros, 3.7% more.
By business units, its activity in vacations Holiday Experiences achieved 1,668 million euros (+ 39%), in cruise ships it invoiced 680.9 million euros (+ 9.9%) and in its division Hotels & Resorts entered 425.5 million of euros (-5.2%).
The result of its operations was negative with losses of 240.4 million euros during the first nine fiscal months, twice more compared to the same period of 2018.
IMPACT FOR LEAVING 15 AIRCRAFT 737 MAX ON EARTH
TUI Group recorded a negative underlying gross operating profit (Ebitda) of 199.7 million in the first nine fiscal months, compared to the positive accounting result achieved one year earlier.
In the third quarter, the underlying Ebitda of the German tourism group was reduced by 46%, to 100.9 million euros, a 49.1% decrease at a constant exchange rate, due to the impact of 144 million euros as a result of the grounding of the 737 MAX. In contrast, the activity in its holiday segment Holiday Experiences improved by 16.7% the underlying result in the third quarter.
The company has previously warned of the impact of grounding the 737 MAX aircraft, in progress since March, when it launched a series of measures, including obtaining replacement aircraft until the end of the summer season to minimize capacity depletion. .
The group foresees that the total costs for not being able to fly with the 737 MAX and the replacement of aircraft amount to 300 million for the full fiscal year.
However, in the face of 2019, it reiterates its orientation, announced at the end of March, and expects to increase its underlying Ebitda by approximately 26%, compared to the 1,177 million euros achieved in 2018.
SUSTAINED GROWTH IN HOTELS AND CRUISES
Hotels & Resorts, which includes both its own brands and investees (RIU, Robinson, TUI Blue and TUI Magic Life), an underlying Ebitda of 226.9 million euros in the first nine months, 7.3% less. Its revenues amounted to 425.5 million euros, 5.2% less than a year ago.
In its division Cruises obtained an underlying Ebitda of 207.9 million euros in the first nine months, an increase of 14%, while turnover increased to 680.9 million euros, 9.9% more.
On the other hand, Destination Experiences, based in Palma, achieved revenues of 562.2 million euros, four times more compared to the same period last year. With an Ebitda of 4.9 million, up 19.5%.
On the other hand, the costs of the tourist group amounted to 10,979 million euros, which represents an increase of 4.8% compared to the first nine fiscal months of its previous year.