Fritz Joussen CEO of TUI Group wishes "Summer holidays [to be] possible responsibly and with clear rules. We will reinvent the holiday in 2020.”
The press realese states " TUI is ready for an early resumption of travel activities in Germany and Europe. Barely two months after almost all business units had to be shut down due to the worldwide travel bans, the tourism group is prepared for a resumption of its operational activities. "
It is urgent for the German group to revive activity as it is urgent for its competitors of the whole hospitality industry. No less than 8,000 employees are to be layed off upon the 70,000 the company employs worldwide. This move is part of the company's strategy to reduce costs by 30%. A vital move after the closing of its activities for several months.
Prior to the Covid19 crisis, the German company was experiencing good results with a +6% turnover and a +21% EBIT to reach €240 million. But the global lockdown stopped the progression and put TUI Group into a risky position. The company obtained a €1.8 billion bridging loan from the KfW and benefits from a 1.75 billion revolving credit line but still, its cashflow is 41,4% lower than lst year at the same period.
The company counts on its 21 million loyal customers along with its cost reductions to go through the storm and resume activity as soon as possible.
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