Travel restrictions: Corona-crisis Tui brockt billion loss

The trip stop because of the Corona pandemic has torn the world's largest tourism group, Tui deeply in the red. Because the company had to cancel in the third

Travel restrictions: Corona-crisis Tui brockt billion loss

The trip stop because of the Corona pandemic has torn the world's largest tourism group, Tui deeply in the red. Because the company had to cancel in the third fiscal quarter from April to June, nearly all the holiday travel, lost Tui, the bottom line of around 1.4 billion euros. The the Hanover-based company informed on Thursday. A year earlier, Tui had retracted almost 23 million Euro profit. Sales fell to 98.5 percent to 72 million euros, so the money to cover operating costs was not sufficient.

In the first nine months of the end of September to the end of the financial year, the loss amounted in order to approximately 2.3 billion Euro. "With the second state line of credit we are prepared if the pandemic in tourism has again a significant impact," explained TUI CEO Fritz Joussen on Thursday.

1.7 million new bookings

Joussen hopes to be able to the outflow in the current summer quarter until the end of September stop. To do this, the group needs as many tourists. Since the resumption of travel, 1.7 million in new bookings received, it said. Also the bookings for the summer of 2021 were very promising. A new forecast, the Management dared not to. In order to survive the crisis, secured a Tui in the meantime, state aid in the amount of three billion euros. In addition, the Board has pushed a comprehensive savings program.

On Wednesday, Tui had announced that in April of granted credit, the funding Bank KfW is to be increased to more than 1.8 billion Euro by a further 1.05 billion euros. Moreover, 150 million euros is to go via a convertible bond of Tui, the of the economic stabilization Fund, the Federal government signed. This could contribute, in the case of a conversion into shares with up to nine per cent of Tui. The issue of the bond is the agreed framework for the further assistance, it said. So Tui is the precursor to a state entry.

Tui broke into the Corona of a crisis due to worldwide travel restrictions on large parts of the business. To counteract this, the group plans to cut around 8000 Points. Alone the fleet of the Airline Tuifly will be reduced from 39 to 17 machines. The Hear could fall to 900 full-time jobs, as well as several locations will be closed. Management and workforce, advise about the Details of the implementation.

Updated Date: 13 August 2020, 05:21

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