The tour operator TUI reported Thursday a new loss of nearly one billion euros in the third quarter of its staggered 2020/2021 fiscal year, weighed down by the pandemic despite a recovery in tourism in Europe.
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The German company recorded, between April and June, a net loss group share of 934.8 million euros, according to a press release.
TUI's operating profit is also in the red, with a loss of 748 million euros.
Hotels, charter flights, cruises which constitute the core business of the German group have been strongly affected since the start of the pandemic, which has brought the tourism sector to its knees.
Consequence: since the start of the health crisis, the tour operator has been accumulating losses.
"Buisness is back"
An encouraging sign despite everything, the company is now experiencing a relative recovery in its activity, especially in Europe, where many travel restrictions have been lifted.
"
Customer demand and the dynamics of reservations are strong (...) particularly in Germany and continental Europe,
" said Fritz Joussen, CEO of the group.
Revenue increased eightfold in the third quarter to 649.7 million euros.
TUI has recorded nearly "
4.2 million bookings for the summer of 2021
".
"
Business is picking up
", wants to believe the company.
But the spread of the Delta variant, which is pushing the number of infections on the rise in many European countries, could slow this dynamic.
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Still, for the first time since the start of the pandemic, the group recorded a positive cash flow, at 320 million euros. A performance achieved at the cost of a large restructuring plan, started in spring 2020 to deal with the crisis. This involved in particular the elimination of 8,000 jobs worldwide, and the sale of 20% of its aircraft fleet. The group has also benefited from three aid plans from the German government, the total of which amounts to 4.3 billion euros.