Daily Management Review

Tui loses €3B in 2020


Europe's largest tour operator Tui has published its accounts for fiscal 2020 (ended 30 September).

Due to the COVID-19 pandemic, the company's losses for the reporting period reached €3 bln. At the same time, the company's managers noted that Tui does not expect bookings to return to normal levels until 2022.

Tui's revenues in fiscal 2020 fell 58% from the previous reporting period to €7.9 billion. 

Last week, the company received its third bailout package from the German government, private investors and banks, in the sum of €1.8 bln. It had previously received a total of another €3 bln in aid. 

The tour operator announced in May that it would be laying off 8,000 staff to cut costs and closing 166 outlets in the UK and Ireland. In its annual accounts, Tui said it was raising its cost-cutting targets from €300m to €400m a year.

Tour bookings for this winter are 82% lower than a year earlier. However, 3% more tours are already booked for summer 2021 than summer 2019, so Tui management has high hopes for business recovery and calls 2021 a "transition year" for tourism and travel.

source: ft.com