Shares in TUI (LON:TUI) have lost ground in today’s session, underperforming the broader London market, as the group’s talks with carrier Etihad to form a leisure airline joint venture collapsed. The FTSE 100 company, however, noted that it remained open for partnerships and joint ventures.
As of 12:21 BST, TUI’s share price had lost 0.52 percent to 1,152.00p, underperforming the broader London market, with the benchmark FTSE 100 index currently 0.09 percent worse off at 7,471.64 points. The group’s shares have added more than nine percent to their value over the past year, but are down by one percent in the year-to-date.
TUI announced in a statement today that its negotiations with Etihad Aviation Group about a planned joint venture had been terminated. Under the initial plans, the UK group’s TUIfly unit would have combined with Niki, owned by Berlin Air, which is partly owned by the Gulf carrier.
“A strong European leisure airline continues to make great strategic sense. After all, the aviation sector is characterised by overcapacity in Germany,” Sebastian Ebel, member of TUI AG’s Executive Board, commented in the statement. “However, Niki is no longer available for a joint venture.”
TUI noted that it remained prepared to contribute to the stabilisation of the German aviation market, and was open for a partnership or a joint venture “serving the strategic goal of reshaping the market”.
The 11 analysts offering 12-month price targets for TUI for the Financial Times have a median target of 1,280.00p on the shares, with a high estimate of 1,562.00p and a low estimate of 950.00p. As of June 2, the consensus forecast amongst 9 polled investment analysts covering the blue-chip group has it that the company will outperform the market.