TUI sinks in fiscal first-quarter

TUI sinks in fiscal first-quarter

The pandemic-induced travel restrictions took their toll on TUI

The world's largest holiday company posted fiscal first-quarter figures that show the pandemic's impact on the industry.

In the past quarter, the Germany-based company reported a loss of €699 million. To keep itself afloat, TUI secured multiple bailouts from the German government. According to Chief Executive Fritz Joussen, the company currently has €2.1 billion in financial resources that should last until summer, when the business takes off.

TUI announced that it is ready to resume its business in the coming weeks and that it already has 2.8 million bookings for summer 2021. However, the European travel market is under question given that in Britain and Germany – TUI's largest markets – the governments warned people multiple times not to book trips this summer. Moreover, Britain is in the process of tightening border controls. Still, TUI believes that the vaccination program should help bookings.

Following the news, TUI stock price fell 1%. In the past twelve months, the share price plummeted 40%.

Source: reuters.com

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