TUI (LON:TUI) is now at an annual loss of 3 billion euros (£2.7 billion).
Holiday operators have posted 58% revenues to 7.9 billion euros (£7.2 billion) amid the pandemic, warning they don’t expect to return to normal trading levels until 2022.
The company has raised its cost reduction target to 400 million euros per year, as bookings for winter have dropped by 82% from last year.
“Extremely quick cost and liquidity measures, accelerated restructuring and flexible business models allowed us to pilot the group through the crisis,” said Fritz Joussen, CEO of TUI. states.
“TUI is ready to make travel activities quick and successful as soon as the lockdown is lifted and destinations resume.”
“The outlook for vaccinations from the start of the year will significantly increase demand for the summer holidays in 2021,” he added.
Joussen added that he hopes all customers will be tested before they fly. “Vaccinations protect you, but on top of that, they require testing and low-cost, high-quality testing that is ready to go is absolutely important.”
Last week, the group confirmed its third bailout thanks to the German government, private investors and banks. TUI will receive an additional 1.8 billion euros, on top of the 3 billion euros already received.
In September, TUI said it would be refunding all holiday packages that were cancelled after the CMA investigation.
The CMA CEO said: CMA actions ensure that TUI UK customers will receive a refund by the end of the month. ”
TUI stocks (LON: TUI) trade -0.93% at 437,60 (1052GMT).
