Bitter pill for the tourism group Tui: The group has to accept a loss of 1.4 billion euros. The reason is the travel stop due to the Corona crisis. The group is now hoping for many vacationers.
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The travel stop due to the corona pandemic has torn the world’s largest tourism group Tui deep into the red. Because the company had to cancel almost all vacation trips in the third fiscal quarter from April to June, Tui lost around 1.4 billion euros. The group announced this on Thursday.
A year earlier, Tui had made a profit of almost 23 million euros. Sales now plummeted by 98.5 percent to 72 million euros, so that the money was insufficient to cover operating costs.
CEO Fritz Joussen hopes to be able to stop the outflow in the current summer quarter by the end of September. To do this, the group needs as many vacationers as possible. Since the resumption of travel, 1.7 million new bookings have been received, it said.
The state can become a co-owner of Tui
In order to survive the crisis, Tui has now secured government aid amounting to three billion euros. In addition, the board of directors has launched an extensive savings program.
On Wednesday, Tui announced that a loan from the KfW development bank granted in April should be topped up by a further 1.05 billion euros. In addition, 150 million euros are to go to TUI via a so-called convertible bond, which the Federal Economic Stabilization Fund (WSF) subscribes.
Such bonds can be exchanged for shares by the owner under certain conditions. The federal government could join TUI as a co-owner with up to nine percent.