Tui posts losses of £261m due to Brexit woes

Travel operator Tui has reported an underlying loss of £261m in the six months to 31 March, up from £148m in the same period for 2018.

The travel operator has also been rocked by the grounding of Boeing’s 737 MAX aircraft.

The company’s summer bookings are down by 3% and selling prices are up by just 1% due to a competitive market.

Tui said for that part of the business there is “weak demand environment persists” placing huge pressure on profit.

Tui said, “This is driven by a number of factors – reduced demand due to last year’s extraordinary hot summer, slowdown of consumer confidence, Brexit uncertainty, shift in demand to the eastern Mediterranean coupled with overcapacity to Spain, as well as the 737 MAX grounding.”

Should the Boeing 737 resume flights by mid-July, the firm has warned investors they are looking at a £147m hit.