Despite a recovery in tourism in Europe, TUI, the world’s largest travel company, reported a loss of nearly one billion euros during the third quarter of its 2020/2021 fiscal year.
According to a press release, the German company lost 934.8 million euros between April and June.
TUI also posted a loss of 748 million euros for its operating result.
The German group’s core business, hotels, charter flights, and cruises, have been hurt by the pandemic, which has brought the tourism sector to its knees.
Since the beginning of the health crisis, the tour operator has accumulated losses.
The company is however experiencing a relative recovery in its business, particularly in Europe, where the majority of travel restrictions have been lifted.
Fritz Joussen, the group’s CEO, says “Customer demand and booking dynamics are strong (…) especially in Germany and continental Europe”.
In the third quarter, sales increased eightfold to 649.7 million euros.
TUI has recorded nearly 4.2 million reservations for summer 2021.
According to the company, business is picking up.
The spread of the Delta variant, which is causing the number of infections to rise again in many European countries, could slow this dynamic.
Nevertheless, for the first time since the outbreak, the group has recorded a positive cash flow, at 320 million euros.
A 320 million plan.
In spring of 2020, in response to the economic crisis, a major restructuring plan was launched.
The company cut 8,000 jobs globally, and sold 20% of its aircraft fleet.
In addition, the group has received three aid plans from the German government totaling 4.3 billion euros.