TUI posts huge loss amid the pandemic
The pandemic forced the company to seek multiple bailouts from the German government
Stocks impacted: TUI Group (TUI1)
The world's biggest holiday group posted a loss of 3 billion euros in the 12 months ended on September 30, compared to 894 million euros of underlying core earnings made in the previous year, on revenues that were 58% lower at 7.9 billion euros. In an effort to become more efficient to help pay off new debts taken on to survive the crisis (the coronavirus pandemic forced the struggling company to seek multiple bailouts from the German government), the Germany-based firm plans to raise its cost-cutting targets to 400 million euros annually from the previous level of 300 million euros. As a reminder, the holiday group secured a third bailout, striking a deal with the German government, private investors, and banks for an extra 1.8 billion euros. Earlier, the firm had received state loans of 3 billion euros. UI Chief Executive Fritz Joussen said in a statement that the COVID-19 vaccine would help boost demand for holidays next year, forecasting a return to 2019 levels by 2022.
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