The COVID-19 pandemic has left deep holes in the travel group TUI’s balance sheet for 2019/2020. The company reports a drop in earnings of almost 3.7 billion euros compared to the previous year and a loss of 3.14 billion euros in the group. This corresponds to a loss of EUR 5.34 per TUI share after EUR 0.71 profit in the previous year. TUI’s turnover fell from 18.9 billion euros to 7.9 billion euros. The extent of the crisis is also evident elsewhere on the balance sheet. The company’s net debt has exploded from 0.9 billion euros to more than 6.4 billion euros, while the equity ratio has collapsed from 25.7 percent to just 1.4 percent.
In the corporate headquarters one hopes for improvements in the coming year. “The pandemic is not over, but there is light at the end of the tunnel and the prospects for tourism and for TUI are good,” the company said on Thursday. According to TUI, 2021 will be the transition year for tourism, and a return to the level before Corona can be expected in 2022. In response to the crisis, the company now wants to reduce costs more than previously planned. The new target for the volume of annual savings is 400 million euros, a third more than previously planned.
“The quick measures to cut costs and secure liquidity are important for the group. They are a stable foundation for the future. TUI was very healthy before the crisis and we want to return to our old strengths as soon as possible, ”says Fritz Joussen, CEO of TUI Group. “The market is intact, our business model is future-proof and customer demand is there. Vacation travel remains very relevant to people, ”said the manager.