Travel organization TUI in trouble; €3 billion loss this year
The TUI Group lost over 3 billion euros in its past financial year, largely due to the coronavirus and accompanying travel restrictions putting severe pressure on the travel organization's turnover and profits. The organization has hope for a better summer season next year, NOS reports.
TUI is a German company that runs hotels, organizes cruises and holidays, and has airlines in various countries, including the Netherlands. All branches of TUI made a loss. Most of the company's hotels and resorts closed completely in the first coronavirus lockdown, and flights were canceled en masse.
As a result, the company's turnover in the financial year from October 2019 to September 2020 amounted to only 8 billion euros, with a loss of more than 3 billion euros. In the previous financial year, TUI generated almost 19 billion euros in turnover and a profit of over 500 million euros.
So far, TUI received 4.8 billion euros in coronavirus support from the German government.
The travel restrictions in place due to the second wave of the coronavirus means that TUI expects to operate at only 20 percent capacity this winter season. It hopes to be back at 80 percent capacity by the summer.