Travel sector recovering from COVID-19 pandemic: Holiday company TUI Group

On Thursday, in a statement the TUI Group said, the holiday travel sector is seeing a recovery from the COVID-19 pandemic.

Following easing of travel restrictions in Britain, the holiday company saw a surge in bookings from Germany and continental Europe, Summer bookings have shot up by 1.5 million since May, said the Germany-based company while adding, it was confident that the demand will continue to maintain its momentum for the rest of the key holiday season.

TUI’s London-listed shares have lost 19% of their value over the last three months following worries on how summer would pan out.

In a statement TUI said, it currently had 4.2 million bookings and was seeing strong booking momentum in recent weeks.

“Germany and continental European markets show high demand. In England this will only be reflected in the fourth quarter (July-Sept). Business is coming back,” said TUI’s CEO Fritz Joussen while adding, profitability will be “reasonably good in summer”.

“We are adding bookings everyday”.

The company may consider raising capital to help manage debt. Last month, banks agreed to extend its credit lines by two years to 2024, giving it more time to repay its debts.

“New bookings are materially helping liquidity,” said analysts at Jefferies in a note.

For the period, its third quarter, TUI posted an adjusted loss before interest and tax of 670 million euros on revenues of 650 million euros.

($1 = 0.8524 euros)

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