Tourist group TUI announced an increase in bookings from Germany, which contributed to the recovery of its business from the recession experienced during the pandemic, in addition to the easing of travel restrictions in Britain that will help support the financial recovery of the company.
The German company stated that reservations have increased by about 1.5 million reservations since May, to a total of 4.2 million this summer, compared to about 9 million reservations in the usual summer seasons, which relieves the financial pressure imposed by the health crisis on the company. However, the slow reopening of the British economy has forced TUI to reduce its summer capacity to 60% of its summer itinerary as it was in 2019, knowing that it was planning to operate at 75% capacity last May.
As for the stock market, the London-listed TUI stock rose by 1% to 336 pence during fair trading today, giving up the previous gains it had achieved by rising by 3%.
Bookings from Germany and the rest of Europe also helped return the company’s positive cash flow during the April-June quarter for the first time since the outbreak of the pandemic, bringing TUI’s income to 320 million euros ($375.78 million).
TUI borrowed more than 4 billion euros during the crisis and received financial support from the German government several times after being forced to stop the tour business last year, but the company confirmed its plans to raise capital to pay off debts at one point.
TUI posted a pre-tax loss of €670 million with revenue of €650 million in the third quarter.