Pandemic pushes holiday company TUI to €1.1bn quarterly loss
Tui has said it reached agreement with Germany for an extra €1.2bn in aid, bringing its total bailout to €3bn
Summer bookings at TUI are off 81%, reflecting the impact of travel restrictions. Photograph: iStock
Tui reported a €1.1 billion quarterly loss, a day after the world’s biggest tour operator secured more aid to prop it up through winter.
Revenue fell 98 per cent for the three months through June after business was essentially shut down by the Covid-19 outbreak, the company said on Thursday in a statement.
Tui’s underlying Ebit loss of €1.1 billion for the three months to June 30th compares to the €102.3 million it made in the same period last year.
Summer bookings are off 81 per cent, reflecting the impact of travel restrictions.
Like other travel companies, Tui has been devastated by the Covid outbreak, which forced lockdowns and brought air travel to a virtual halt. Recent surges of the virus in Spain and elsewhere forced countries to pull back from a reopening, spoiling the chances of airlines and hotels salvaging part of the busy summer season.
Tui said on Wednesday that it reached agreement with Germany for an extra €1.2 billion in aid, bringing its total bailout to €3 billion. The government acquired convertible bonds that could give it a stake of 9 per cent.
Bookings for summer 2021 stand at 145 per cent of what they should have been in 2020 had coronavirus not happened, chief executive Fritz Joussen said on a conference call, reflecting the desire of customers who chose not to travel this year for a break next summer. Prices for summer 2021 are also higher, he said.
Tui expects to end cash outflows in the quarter ending September 30th. – Bloomberg/Reuters