Tourist travel giant TUI said the grounding of Boeing’s 737 Max jets was a big burden as it reported a 46% decline in underlying quarterly core earnings, sending its shares lower.

Travel giant TUI said its first-half losses deepened due to airline overcapacity for Spain and the grounding of its 15 Boeing 737 Max planes, two issues that could plague the Anglo-German tour operator over the rest of the year.

European holidaymakers could turn to destinations such as Bulgaria and Cape Verde if they want to avoid high prices in busy Spanish destinations, the chief executive of European tourism group TUI said.

TUI Group, Europe’s largest tour operator, yesterday said it was on track to meet its profit target this year as more European holidaymakers head further west and Britons remain eager to go abroad despite the fall in sterling after the Brexit vote.

Shares in the world’s largest leisure tourism group, TUI, surged yesterday after it indicated it was on course to record strong earnings growth despite the Tunisian beach massacre.