Holiday company TUI Group has said that a surge in bookings from Germany has driven a recovery from the COVID-19 pandemic slump and an easing of travel restrictions in Britain will add momentum.
Bookings Jump
The German-based company said that bookings have jumped by 1.5 million since May, and in total it has 4.2 million bookings for this summer, compared to approximately nine million in a typical summer, helping to ease pressure on finances which have been strained by the COVID-19 crisis.
"Adding Bookings Every Day"
"We are adding bookings every day," TUI chief executive Fritz Joussen told reporters.
UK Bookings Rising
Britain's slower than expected reopening of travel dragged on TUI in its April-June quarter, but Joussen said that UK bookings are rising after the government scrapped quarantine for fully-vaccinated people to most holiday destinations in mid-July.
Summer Capacity Cut
The slower UK opening, however, forced the group to cut its summer capacity to 60% of its 2019 programme, down from the 75% planned in May.
Cash Flow Positive
Bookings from Germany and the rest of continental Europe helped TUI turn cash flow positive in April-June, for the first time since the pandemic started, with a cash inflow of €320 million.
"Not Burning Cash Anymore"
"The good thing is liquidity is out of the way, we are not burning cash anymore," Joussen said, adding that profitability will be "reasonably good in summer" and bookings for 2022 are very strong.
Loans And Bailouts
TUI has taken on loans of over €4 billion and been bailed out multiple times by the German government after the pandemic forced it to stop running holidays last year.
Considering Raising Capital
Joussen reiterated that the company will consider raising capital to help pay down debt at some point. In July, its banks agreed to extend its credit lines by two years to 2024.
Third Quarter Adjusted Loss Before Interest And Tax
For its third quarter, TUI posted an adjusted loss before interest and tax of €670 million on revenues of €650 million.
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