Member Info for inevitable

TUI has flogged half of its liners in February, albeit to a joint venture with Royal Caribbean. It plans to lighten its load further by curtailing investments, selling off unprofitable businesses, halving its airline fleet, trimming its headcount and cutting its travel agencies and shops to focus online.

Nonetheless, the group remains gravid with 400-plus hotels, 150 aircraft and 18 cruise ships — including six imaginatively named Mein Schiff 1 to 6.

Net debt stands at about €3.85bn. Analysts at Jefferies reckon its gross debt is about €7bn. Mr Joussen acknowledges the balance sheet needs to be restructured.

Investors should adopt the brace position for a rights issue in the autumn. Tui is nowhere near being up, up and away.

Game over!

Tomorrow and the coming days is going to be a blood bath I’m afraid. However you paint things, TUI is now saddled with so much debt, that it will take years to sort out this mess, if at all! They are losing a fortune, if they cannot earn money in peak season, when can they?

Until governments all over the world sort out the whole quarantine issue and the UK government allows testing at the airports, the travel industry is well and truly f.cked!

I have been in this business for over 30 years, take it from a veteran in the industry, TUI was an industry giant before covid, who were untouchable, but since March, they have been seriously damaged. It would have been a lot better for them to do a Rights Issue, short term pain for share holders, for possible long term gain. With these huge loans, they have very little chance of recovering, they have the shackles of debt firmly tied to their ankles.

I know you won’t like my comments, but it will take a miracle for this share to recover, if at all.

I have huge respect for this company, but I'm afraid it is game over. Eventually the German Government will have no choice but to take over eventually, and us poor PI's will be wiped out!