Status: 08.02.2022 11:12 a.m
People are traveling more again and TUI is expecting strong summer business. The travel company partially repays state aid. According to CEO Joussen, another part could become a holding.
In the last quarter things went better again for the ailing travel group TUI. In the seasonally weak first business quarter up to the end of December, sales quintupled to 2.37 billion euros compared to the same period of the previous year. The operating loss fell significantly from 676 to 274 million euros.
High demand
The environment for tourism has improved significantly, explained TUI. Restrictions due to the corona pandemic are more predictable and have been lifted in some markets. The number of guests on trips and cruises quadrupled to 2.3 million in the past quarter.
But it should be even better in the high season. “We expect a strong summer in 2022. The way out of the pandemic is becoming increasingly clear,” said TUI boss Fritz Joussen. The demand for travel is so high across all markets that the pre-crisis level of 2019 can be reached in the summer. Many customers also treat themselves to higher-quality trips, so that the average prices for the summer are around a fifth higher.
First repayment of state aid
Now TUI wants to repay the first 700 million euros of state aid by April 1st. The group from Hanover had to be saved from insolvency in the Corona crisis with 4.3 billion euros. Of this, EUR 3.05 billion was granted as a credit line by the state bank KfW, the rest via two silent partnerships and a convertible bond.
According to TUI boss Joussen, the state could possibly refrain from repaying part of the state aid and thus become a shareholder in the travel group. It is possible to convert the 1.1 billion euros in silent partnership into shares. “It can be assumed that the state will convert,” Joussen said today. The rescue package for TUI provides that the state can get involved with up to 25 percent plus one share.
TUI also increased its capital twice during the crisis and wants to be given the go-ahead at today’s general meeting to continue tapping into the capital market.