TUI AG: After 737 MAX grounding: TUI secures additional flight capacity to guarantee customers' holidays / Update on guidance... (793413)
March 29 2019 - 3:52AM
UK Regulatory
Dow Jones received a payment from EQS/DGAP to publish this press
release.
TUI AG (TUI)
TUI AG: After 737 MAX grounding: TUI secures additional flight capacity to
guarantee customers' holidays / Update on guidance of underlying EBITA
rebased for FY19
29-March-2019 / 08:52 CET/CEST
Dissemination of a Regulatory Announcement that contains inside information
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
*Inside Information according to article 17 MAR*
*After 737 MAX grounding: TUI secures additional flight capacity to
guarantee customers' holidays / Update on guidance of underlying EBITA1
rebased for FY19*
*Hanover, 29 March 2019*. Following the grounding of the 737 MAX aircraft,
TUI has made arrangements in order to guarantee customers' holidays. The
Group is utilising spare aircraft of its fleet, extending expiring leases
for aircraft that were supposed to be replaced by 737 MAX aircraft, as well
as leasing in additional aircraft. TUI's fleet, which comprises around 150
aircraft, currently includes 15 grounded 737 MAX for the UK, Belgium, the
Netherlands and Sweden. A further eight 737 MAX are scheduled for delivery
by the end of May 2019.
*Considerable uncertainty around when the 737 MAX will return to service*
No dates have yet been announced for modifications of the existing aircraft
model by the manufacturer, neither for approval of such modifications by the
Federal Aviation Administration (FAA) and the European Aviation Safety
Agency (EASA). Therefore, TUI has taken precautions along with other
airlines, covering the time until mid-July, in order to be prepared for the
Easter-, Whitsun- and start of the summer holiday season and to secure
holidays for its customers and their families.
*Update on guidance for underlying EBITA1 rebased*
Assuming 737 MAX flight resumption latest by mid-July, the Group currently
expects to see a one-off impact on underlying EBITA1 rebased of approx. EUR
200m in connection with the 737 MAX grounding. This impact is especially
attributable to costs related to the replacement of aircraft, higher fuel
costs, other disruption costs, and the anticipated impact on trading. As a
result of this one-off impact, the Executive Board of TUI AG has decided
today to update the guidance and now expects an underlying EBITA1 rebasedfor
FY19 of approx. minus 17% (previously 'broadly flat') compared with FY18 of
EUR 1,177m2.
Should it not become clear within the coming weeks that flying the 737 MAX
will resume by mid-July, TUI will need to extend the abovementioned measures
until the end of the summer season. The current assumption for this
additional one-off impact until 30 September 2019 is up to EUR 100m. For
this scenario the Executive Board of TUI AG has also decided today to update
the guidance for the underlying EBITA1 rebasedfor FY19 to up to minus 26%
compared with FY18 of EUR 1,177m2.
*TUI Group's management is holding a conference call on 29 March 2019, at
02:00pm GMT (03:00pm CET) to give more insight on the ad-hoc announcement.
The dial in details for the call will follow in shortly. *
*Contact:*
*Analysts & Investors*
Peter Krueger, Group Director of Strategy, M&A and Investor Relations, Tel:
+49 (0)511 566 1440
Contacts for Analysts and Investors in UK, Ireland and Americas
Sarah Coomes, Head of Investor Relations, Tel: +44 (0)1293 645 827
Hazel Chung, Senior Investor Relations Manager, Tel: +44 (0)1293 645 823
Contacts for Analysts and Investors in Continental Europe, Middle East and
Asia
Nicola Gehrt, Head of Investor Relations, Tel: +49 (0)511 566 1435
Ina Klose, Senior Investor Relations Manager, Tel: +49 (0)511 566 1318
*Media*
Kuzey Alexander Esener, Head of Media Relations, Tel: +49 (0)511 566 6024
FORWARD-LOOKING STATEMENTS
This announcement contains a number of statements related to the future
development of TUI. These statements are based both on assumptions and
estimates. Although we are convinced that these future-related statements
are realistic, we cannot guarantee them, for our assumptions involve risks
and uncertainties which may give rise to situations in which the actual
results differ substantially from the expected ones. The potential reasons
for such differences include market fluctuations, the development of world
market fluctuations, the development of world market commodity prices, the
development of exchange rates or fundamental changes in the economic
environment. TUI does not intend or assume any obligation to update any
forward-looking statement to reflect events or circumstances after the date
of this announcement.
1 Underlying EBITA has been adjusted for gains/losses on disposal of
investments, restructuring costs according to IAS 37, ancillary acquisition
costs and conditional purchase price payments under purchase price
allocations and other expenses for and income from one-off items. EBITA
comprises earnings before interest, taxes and goodwill impairments. It
includes amortisation of other intangible assets and it does not include the
result from the measurement of interest hedges.
2 Rebased in December 2018 to EUR 1,187m to take into account EUR 40m impact
for revaluation of Euro loans balances within Turkish Lira entities in FY18
and further rebased to EUR 1,177m for retrospective application of IFRS 15.
Contact:
Peter Krueger, Member of the Group Executive Committee - Group Director
Strategy, M&A & Investor Relations, Tel: +49 (0)511 566 1425
Contacts for Analysts and Investors in UK, Ireland and Americas
Sarah Coomes, Head of Investor Relations, Tel: +44 (0)1293 645 827
Hazel Chung, Investor Relations Manager, Tel: +44 (0)1293 645 823
Contacts for Analysts and Investors in Continental Europe, Middle East and
Asia
Nicola Gehrt, Head of Investor Relations, Tel: +49 (0)511 566 1435
Ina Klose, Investor Relations Manager, Tel: +49 (0)511 566 1318
ISIN: DE000TUAG000
Category Code: MSCU
TIDM: TUI
LEI Code: 529900SL2WSPV293B552
OAM Categories: 2.2. Inside information
Sequence No.: 7992
EQS News ID: 793413
End of Announcement EQS News Service
(END) Dow Jones Newswires
March 29, 2019 03:52 ET (07:52 GMT)
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