TUI reports first financial quarter 2021 results, fully prepared for holiday season

TUI continued to realign the Group in the first financial quarter of 2021 (October to December) against a backdrop of widespread lockdowns and massive travel restrictions and is prepared for a relaunch of its tourism business in the coming weeks. Tourism was the first industry to be affected by massive COVID-19 restrictions which came into effect in March 2020. With the approval of highly effective vaccines, more vaccinations, and reliable and widely available rapid tests, the groundwork has been laid for a return to basic freedoms and also open borders.

During the reporting period, the measures initiated before the pandemic to realign the Group were further advanced. Cost discipline and liquidity strengthening measures were also consistently pursued. As a result, the monthly cash outflow was significantly reduced in the three reporting months (October to December), averaging around €300 million. Previously, the Group had expected €400 to €450 million. Adjusted EBIT on a constant currency basis was thus limited to €-698.6 million (previous year’s quarter not affected by the pandemic: €-146.7 million). Revenue reached €468.1 million (previous year: €3.85 billion) despite significant travel restrictions and worldwide lockdowns.

In the period under review, TUI had agreed a third corona financing package together with shareholders, banks and the Economic Stabilisation Fund (WSF) due to the ongoing pandemic situation. The package, with a total volume of €1.8 billion, was successfully completed in the last week of January. It included a rights issue, which will provide the Group with funds of around €500 million. The Mordashov family, as a strategic shareholder of the Group, participated in the capital increase beyond its previous stake and now holds 30.1% of TUI AG. Including the third financial package and the early redemption of the senior bond with a volume of €300 million due in October 2021, TUI had financial resources of €2.1 billion as at February 3, 2021. The Group thus secures further liquidity until the planned return of the business.

Despite the current uncertainties due to the rapidly changing pandemic situation, demand for summer holidays is good. TUI has recorded a total of 2.8 million bookings for summer 2021 – around 56% of bookings at the same time for summer 2019, with average prices 20% higher than for summer 2019. Capacity for the 2021 summer program remains around 80% of the summer 2019 program. The uncertainties of the ongoing pandemic and ever-changing quarantine and travel requirements are also having an impact on the timing of bookings, as expected. As was already the case last summer and autumn, customers are booking at shorter notice and thus later in the year. (€1.00 = US$1.21 at time of publication.)