European Tour Operator TUI has reported a third quarter of significant net profit decline, citing the ban of its Boeing 737 MAX fleet and fewer bookings this summer, AFP reported.
TUI, formerly Thomson, posted on Tuesday August 13th a net profit of €21.7 million, an 85% dive from last year, in the April to June financial year quarter three.
"The flight ban on the 737 MAX in March had a significant impact on earnings in the Markets and Airlines segment," TUI said in a statement.
The group had to replace the airplane, which set it back €144 million in three months.
TUI had been expected to raise the number of its 15 Boeing 737 MAX aircraft to 23.
However, in spring, two crashes that killed 346 led to a worldwide ban on the new model.
Hanover-based group TUI, listed on the London Stock Exchange, generated sales of €4.75 billion over the quarter, up 4% year-on-year, supported by cruises and bolt-on extras like excursions or guided tours offered at its destinations, a segment which is growing through acquisitions.
TUI said the precariousness created by Brexit and unpredictable weather drove bookings down this year.