Prior to entering its close period ahead of reporting its full year results for the twelve months ending
C-19 Highlights
Prior to the C-19 pandemic,
TUI was on track to deliver a strong result for financial year 2020
Since the worldwide travel suspension in March, significant self-help actions have been taken to address the impact of the C-19 pandemic across the business
Liquidity swiftly managed by securing state aid from the German Federal government
Cash fixed costs reduced by more than 70% during the immediate lockdown period
Comprehensive compensation agreement finalised with
Completed the
First tour operator to successfully restart operations across multiple markets and destinations, helped by the advantage of our integrated and diversified business model
Global Realignment Programme launched to permanently reduce overhead cost base by 30% across the Group
Summer 2020 and Winter 2020/21 capacity reduced as a result of recent volatile changes in travel restrictions
Overall FY20 Q4 cash outflow remains as expected
As at
Chief Executive of
'We have successfully restarted our operations; customers are enjoying their holidays with newly adapted hygiene protocols and we have taken 1.4m customers on their holidays since restart1. Destination availability at present is highly influenced by government policy and development of the pandemic, meaning the environment remains volatile, and is likely to remain so for the next few quarters.
'Leisure holidays remain important to customers and have been one of the most missed activities2 during the pandemic, with leisure travel expected to recover faster than business travel. Our integrated model, underpinned by our trusted and leading brand, offering differentiated products and attractive value propositions, combined with proven flexibility in a volatile environment, means we are strategically well placed to benefit as leisure travel volume recovers over the coming seasons.
'We are on track to complete the additional stabilisation package provided by the German Federal government as announced on 12 August with waiver approval secured from our Senior Notes bond holders. Our Global Realignment Programme is firmly underway with digitalisation initiatives accelerated throughout the Group. TUI will emerge a stronger, leaner, more digitalised business and is well positioned to benefit from the expected recovery.'
Please find the full version of the Pre-Close Trading Update here (PDF)
1 Since restart of operations in mid-June to end of
2 BCG COVID-19 consumer sentiment survey
About
In financial year 2019,
Global responsibility for sustainable economic, ecological and social activity is a key feature of our corporate culture.
Corporate Spokesperson/Head of Media Relations
Contact details
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