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Tui warns Boeing 737 Max grounding to cost €300m

Alice Hancock in London

Anglo-German travel group Tui has suffered hefty losses at its airline division because of the grounding of Boeing’s 737 Max aircraft as it battles to maintain its share in a market overshadowed by Brexit uncertainty. “It is very difficult to say how Brexit will happen but the currency movements are the main effect,” said Fritz Joussen, Tui chief executive, who added that the fall in value of sterling had resulted in price increases of roughly 4 per cent for UK consumers. Tui has warned on profits twice this year as a result of the 737 Max groundings but on Tuesday held its guidance for the full year, saying it would be supported by plans to “accelerate” the transformation of its tour operating business, which includes its airline, towards more of an online holiday platform.