TUI says it is not going down like Thomas Cook despite earnings slump

HOLIDAY giant TUI said on Tuesday it is not on the same path as doomed Thomas Cook despite earnings slumping by a quarter in “challenging” market conditions.

The firm cautioned over Brexit uncertainty hitting passenger confidence, competition from low-cost airlines and the grounding of Boeing’s 737 Max 8 planes.

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The company said it expects full-year underlying core earnings — before interest and tax — to be down 26 per cent.

But CEO Friedrich Joussen said the business “proved to be resilient, even in this challenging market environment”.

He added: "These external challenges will continue in full-year 2019-20 - therefore, we will focus on becoming more cost competitive in our markets and airlines business to protect and extend our market share where possible."

TUI run package holidays, cruises and flights to 27million customers around the world.

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The tour operator employs 10,000 in the UK and is based in Crawley, West Sussex.

Richard Hunter, head of markets at Interactive Investor, said: “The update delivers proof, if it were needed, that these are tough times in the travel industry."

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