TUI share price slides in wake of Thomas Cook’s collapse
Thomas Cook went into liquidation on Monday, forcing TUI to assess the impact of its rival’s insolvency on its own business ahead of its end of year results.
TUI saw its share price fell by 5% on Wednesday after assessing the impact of rival Thomas Cook’s collapse on the final week of its 2019 financial results.
The tour operator said is business model remains ‘resilient’ despite challenging market conditions, with the company offering replacement flights to TUI customers that had booked on Thomas Cook Airlines.
Brexit uncertainty and 737 MAX grounding remain a challenge
Aside from the Thomas Cook debacle, TUI’s markets and airlines business continues to face several ongoing challenges including the grounding of its 737 MAX aircraft, airline overcapacities and continued Brexit uncertainty.
‘These external challenges will continue in FY20,’ TUI Group CEO Friedrich Joussen said in the company’s pre-close trading update on Tuesday.
However, even with a myriad of headwinds, the company’s 2019 summer season is closing out in line with expectations and TUI reiterated its full-year underlying EBITDA guidance of up to -26% compared with the €1.17 billion it recorded in 2018.
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