As part of the deal, the aircraft manufacturer will provide compensation for the grounding of its 737 MAX plane, which was removed from service last year after two crashes.
TUI, Europe’s largest travel company, said this will be received over two years and will cover a “large part” of the financial impact it felt last year, which is estimated at around €400-500mln.
Furthermore, the Anglo-German group said Boeing will also provide it with credits for some future orders and agreed that TUI will take delivery of fewer 737 MAX aircraft over the next few years.
Deliveries of the 61 aircraft the travel group has ordered will be delayed by two years on average.
The FTSE 100 company said this will “significantly reduce TUI's capital and financing requirements for aircraft in the coming years”.
Fritz Joussen, TUI’s chief executive, said: “This enables TUI to rapidly adapt its fleet growth to the currently challenging market environment. And it supports our plan to downsize the aircraft fleet and reduce the capital requirements for aircraft investments in the group.”
TUI shares leapt 9% on Wednesday morning to 488.9p, where they are still down 50% since the start of the year.