In TUI’s Q2 results in May, it announced a significantly improved second financial quarter. With strong bookings and business performance TUI’s liquidity is further improved and TUI’s net debt was reduced.
1.9 million travelled with TUI in the period under review, turnover was around nine times higher and the usual seasonal loss was almost halved compared to the same period last year. In terms of using TUI’s capacity, it’s almost reached pre-Corona levels. New bookings in the last six weeks across all markets are also above summer 2019 levels.
TUI is on the right path to finding its way back to former strength, and expects to see strong demand for travel this summer.
TUI’s goal is to continue reducing interest costs and return the Corona state aid it received in the pandemic, as quickly as possible. Last week TUI’s Executive Board and Supervisory Board launched a capital increase against cash contributions. It excluded shareholders’ subscription rights and proceeds from the capital increase and existing cash resources will be used to repay the German government in full the 671 million euros it received from the Economic Stabilisation Fund in the pandemic. In addition, the Group will also reduce the outstanding KfW credit lines.
After two years of crisis, TUI expects to become profitable again in the current financial year with a significantly positive underlying EBIT. This is a short overview for partners. For full information on the Q2 results click here to go to TUI Group’s website.
COVID-19 has been the toughest challenge the travel industry has ever faced. But when the tough got going, TUI worked with its partners and through its strong and long-term relationships, have continued to navigate through this together.
Helen Caron, Group Product & Purchasing Director said: “We’re on the road to recovery and with inflation rising I know we will all be facing pressures. We need to continue working together to ensure demand for travel isn’t dampened by increased holiday prices. We need to ensure we continue offering customers great holidays at great prices. Through good prices, discounts and offers we can encourage more customers to travel, which will help us all bounce back quicker and stronger. We would appreciate our partners support with this.”