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.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.