Airbus Flies to Record Highs, TUI Falls After Latest Boeing Blow

By Reuters
January 22, 2020Business News
Airbus Flies to Record Highs, TUI Falls After Latest Boeing Blow
An Airbus A350-1000 conducts a test flight over Chateauroux airport, central France, on Feb. 8, 2019. (Guillaume Souvant /AFP via Getty Images)

Airbus’s shares rose to record highs on Jan. 22, after its arch rival Boeing warned of new issues with the Boeing 737 MAX plane, while customers and suppliers slumped after the latest blow from the U.S. aerospace company.

Airbus was up by 1.5 percent at 138.48 euros at 10:05 GMT, the top performer on France’s benchmark CAC-40 index after scaling record highs in early deals.

In contrast, holiday company TUI’s London listed stock was down as much as 4.7 percent—the lowest since September and the biggest faller on the FTSE 100 .

Shares in suppliers, Britain’s Senior and France’s Safran which make the engine for the jet with General Electric, were lower.

Late on Tuesday, Boeing said it did not expect to win approval for the return of the 737 MAX to service until mid-year due to further potential developments in the certification process and regulatory scrutiny on its flight control system.

Boeing 737 MAX 8
A 737 MAX airplane on the tarmac with its signature winglet and fuel efficient engines outside the company’s factory, in Renton, Wash., on March 11, 2019. (Stephen Brashear/Getty Images)

In December, TUI warned that if the 737 MAX was not back in service by May that could wipe off as much as 400 million euros ($443.6 million) from its annual earnings.

By Sudip Kar-Gupta in Paris and Josephine Mason in London

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