TUI posts an operating loss of € 699m in Q1
German tourism group TUI reported adjusted operating profit (EBIT) of minus € 699 million (US $ 846 million) in the first quarter of its fiscal year ending December 2020, the company said on Tuesday.
During the quarter, the German travel and tourism company continued its efforts to discipline costs and strengthen liquidity initiated before the pandemic to limit losses, and therefore saw its monthly cash outflows amount to an average of around 300 million euros between October and December, lower than that between October and December. 400 and 450 million euros he had planned.
“With strict cost discipline and the realignment of the group, which is moving at full speed, we were able to reduce the loss in the last quarter,” Fritz Joussen, CEO of TUI Group, said in a statement. .
First quarter revenue reached 468.1 million euros despite significant travel restrictions and global lockdowns. TUI noted that the Canary Islands were among “the few destinations accessible to vacationers”.
In the first quarter of last year, which was unaffected by the pandemic, TUI recorded revenues more than eight times higher at 3.85 billion euros.
Due to the ongoing pandemic, TUI has agreed to a third Covid-19 financial package with shareholders, banks and the Economic Stabilization Fund (FSM). The package amounting to 1.8 billion euros was concluded in the last week of January. At the start of February, TUI still held € 2.1 billion in cash and cash equivalents.
“Despite the current uncertainties due to the rapidly evolving pandemic situation, demand for summer vacations is good,” TUI noted.
The travel agency recorded a total of 2.8 million bookings for summer 2021, or around 56% of bookings in the same period for summer 2019. Prices were on average 20% higher compared to pre-crisis level in summer 2019.
The Covid-19 vaccination campaigns that have started were an important precondition for the resumption of tourism in the summer of 2021, TUI noted.
“The more determined vaccination campaigns are implemented, the sooner we can return to true freedom to travel,” said Joussen. In particular, “the English market is of particular importance to our business” and the vaccination campaign in the country has proceeded at an “impressive pace”.
(1 euro = 1.21 US dollars)