TUI sticks with Boeing 737 MAX orders despite profit hit

TUI remains committed to its Boeing 737 MAX orders despite two fatal crashes that have led to the grounding of the plane worldwide and caused the Anglo-German tour operator to issue a profit warning on Friday. TUI said its profit would fall by at least E200m this year due to the cost of substituting planes, loss of business and lower fuel efficiency - further evidence of the financial impact of the two deadly accidents after warnings from North American airlines. The holiday firm’s shares fell to an all-time low. Global airlines and travel groups have had to make contingency plans after 737 MAX planes were taken out of service following an Ethiopian Airlines disaster on March 10. David Burling, TUI’s board member responsible for airlines, said the travel company had “no intention” of changing its order for eight more MAXs on top of the 15 it already operates - one-tenth of its fleet. CEO Joussen said: “We are saving $1m per year per aircraft in fuel, but - and here comes the but - safety first.” TUI has little scope to cancel flights, as some airlines are doing, because the flights feed its hotel and cruise business. It is leasing planes complete with crews to replace those due to have been flown by 737 MAXs at the cost of $1m each per month, executives said, adding they had seen some tightening of the so-called wet-leasing market.<br/>