(Alliance News) - Tui AG on Wednesday said lockdowns imposed to combat the coronavirus pandemic badly hurt performance in the first half of its current financial year, but it said demand for holidays remains strong.
The Hanover, Germany-based tour operator saw its loss widened to EUR1.50 billion for the six months to the end of March from EUR815.0 million a year before. Underlying loss before interest, tax, depreciation and amortisation widened to EUR856.1 million from an adjusted EUR266.0 million.
Revenue dropped by 89% to EUR716 million from EUR6.64 billion a year before, as a result of extended travel restrictions imposed across Tui's key European markets.
Within Hotels & Resorts, 122 hotels were open at end of March, reflecting both the usual winter seasonality and travel restrictions.
Meanwhile, Markets & Airlines, took 684,000 customers on holiday during the half-year, demonstrating the continued desire to travel when restrictions allow, Tui said.
Tui Cruises and Hapag-Lloyd Cruises operated five ships during the first half, offering itineraries to the Baltic and North Sea and to the Greek islands in the first quarter and to the Canary Islands in the second quarter of Tui's current financial year.
Elsewhere, the company said its Global Realignment programme is on track to achieve cost savings target of EUR400 million per year by financial 2023.
Looking ahead, Tui said it has a pipeline of 2.6 million customers booked for summer 2021 season. It said this was down slightly from its last update, as customers deferred travel due to a lack of clarity over government travel restrictions.
Though bookings for the season are down 69% compared to summer 2019, it said it is "fully confident" the typical seasonal inflow will materialise heading into the peak period.
The company said it plans capacity of 75% for its upcoming peak summer months, with re-opening portfolio focused on destinations such as Greece, Balearics and Canaries.
For the winter 2021-22 season, Tui said bookings are up 17% compared to 2019-20.
It said it had net debt of EUR6.81 billion on March 31, up from EUR4.90 billion a year before, but had available liquidity of EUR1.7 billion as of May 7.
Tui shares were trading 2.5% lower in London on Wednesday morning at 416.90 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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TUI AG (TUI)