Plus   Neg

TUI AG Q2 Loss Widens; Warns On FY19 Earnings, Backs Sales View

TUI AG (TUIFF.PK) reported Wednesday that its second-quarter net loss attributable to shareholders was 202 million euros, wider than last year's net loss of 171.7 million euros.

Loss per share were 0.34 euro, compared to loss of 0.29 euro a year ago.

Loss for the quarter before income taxes from continuing operations was 245.8 million euros, wider than prior year's loss of 174 million euros.

EBITDA was negative 118.7 million euros, compared to last year's negative 39.5 million euros. Underlying EBITDA was negative 104.3 million euros, compared to negative 32.1 million euros a year ago.

EBITDAR declined 60.1 percent from last year to 48.1 million euros.

Turnover for the quarter edged down 1.4 percent to 3.102 billion euros from prior year's 3.145 billion euros.

For Summer 2019, the company noted that 59 percent of the total programme has been sold compared with 62 percent at this time last year. Bookings are down 3 percent, with average selling price up 1 percent against strong comparatives.

Looking ahead for fiscal 2019, the company currently expects to see a one-off impact on underlying EBITA of approximately 200 million euros in connection with the 737 MAX grounding.

The Executive has updated the guidance and now expects an underlying EBITA for FY19 of approximately minus 17 percent compared with last year's 1.18 billion euros.

The Board expects a further negative one-off effect if it does not become sufficiently certain in the course of May that flying the 737 MAX will resume by mid-July. TUI will then need to fully extend the measures until the end of the summer season. For this scenario, the Executive Board also updated the guidance on underlying EBITA for FY19 to up to minus 26 percent from last year.

Further, the company's outlook for turnover growth of around 3 percent for the year remains unchanged.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Apple Inc. is taking necessary precautions including Covid-19 testing for those employees returning to work at its headquarters in Silicon Valley, Bloomberg reported citing people familiar with the process. The company, which opened its main Apple Park office in May bringing back some hardware and software engineers, plans the gradual reopening of the building keeping the coronavirus safeguards. A U.S. appeals court has blocked the sales of Bayer AG's dicamba-based Xtendimax in the United States. The three-judge panel in the U.S. Court of Appeals for the Ninth Circuit ruled that the US Environmental Protection Agency (EPA) overstated the protections and substantially understated or ignored the risks related to the use of dicamba-based herbicides. Tesla Chief Executive Officer Elon Musk has called for a breakup of Amazon after the online retail giant refused to publish an upcoming book about COVID-19. Writer Alex Berenson said on Twitter that Amazon refused to publish his booklet about the coronavirus as it did not comply with the company's guidelines. Berenson is a former New York Times reporter.
Follow RTT