Tour operator TUI is expecting a €200 million ($225 million) impact on earnings from the Boeing 737 Max grounding, as it puts in place a contingency plan to ensure sufficient summer capacity.
The company states that this one-off figure is based on the assumption that 737 Max operations will be restored by mid-July at the latest.
But it warns that it will need to extend contingency measures until the end of the summer season if a timeframe for restarting Max services does not become clear “within the coming weeks”.
Such an extension would involve a further €100 million impact on its underlying EBITA, it says.
TUI has taken steps to secure capacity for the Easter holiday period and the initial part of the summer season, activating spare aircraft within its fleet and extending leases for aircraft which were due for replacement by 737 Max jets.
The company says it is also leasing-in additional aircraft.
TUI has 15 737 Max jets which are affected by the grounding, distributed among its UK, Belgian, Dutch and Swedish operations.
It had been expecting to receive a further eight of the type by the end of May this year.
TUI has revised its full-year guidance, stating that it expects a 17% reduction in underlying EBITA, whereas it had previously indicated that the figure would be “broadly flat” compared with last year’s level of €1.117 milion.
But it adds that, should the grounding persist beyond mid-July, this reduction will increase to 26%.