Global travel operator TUI plunged 10 percent in early Frankfurt trading after a profit warning caused by the grounding of the Boeing 737 Max 8.

The flight suspension will burden the company with 200 million euros in additional costs for, among other things, leasing new aircraft, the company stated in a press release.

”"As a result of this one-off cost, TUI's board has today decided to update the guidance and now expects an underlying operating profit for the 2019 financial year of around minus 17 percent," the company writes in the press release.

TUI's previous guidance indicated that the result (EBIT) for 2019 would land around zero. 

The model was grounded two weeks ago after two crashes in six months. TUI is Europe's second-largest user of the Max 8 after Norwegian, with the plane making up 15 of the 100 planes in TUI's fleet, according to Bloomberg.

Source: news agency direkt-di.se