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TUI Group sunk to quarterly loss

Christian Fernsby |
TUI Group is banking on a summer recovery to help ease its strained finances after it sunk to a 699 million euro quarterly loss.

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Topics: TUI   

Germany-based TUI, which before the pandemic took 23 million people on holiday annually, has secured multiple bailouts from the German government to survive. It said it currently had 2.1 billion euros ($2.5 billion) of financial resources.

“That should be enough until summer, until the business takes off in summer,” Chief Executive Fritz Joussen told reporters on a call.

TUI said it was ready to relaunch its business in the coming weeks and that it had 2.8 million bookings for this summer, adding that customers were likely to book much closer to their departure date this year.

For the three months to the end of December, TUI said it cut its monthly cash outflow to 300 million euros, from an expected level of 400 to 450 million euros.

That meant its adjusted core earnings (EBIT) for the quarter came in at 699 million euros, compared to the loss of 147 million euros for the same period in 2019, in what is a seasonal business focused on summer tourism.

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