TUI sinks to €$1.43 bn loss as tourists stay home

The halt on global tourism earlier this year inflicted chaos on Tui Group, the world's largest travel company, which reported on Thursday a €1.4 billion ($1.65 billion) net loss in the April-June period.

The Hanover-headquartered travel operator had to cancel almost all bookings during those three months, Tui said on releasing results for the third quarter of its financial year. Revenue collapsed by 98.5% to 72 million euros, meaning that the company failed to cover its operating costs.

Tui chief executive Fritz Joussen expressed hopes of stemming the losses during the ongoing summer season, which started late and is set to last until the end of September - although this will require convincing a vast amount of people to holiday during the current pandemic.

Since Tui's holiday offerings resumed, the company says it has taken 1.7 million new bookings.

In the first half of the 2019-20 business year, up to March, the Tui Group already saw a significantly higher loss of 892.2 million euros compared to losses of €343.1 million in the same 2018-19 period.

But the travel firm's business is typically weaker in winter, and most of its earnings in regular years come from the key summer period.

On Wednesday, Tui said it would receive an additional €1.05 billion as part of a German state loan to support it through the crisis.

This comes on top of more than €1.8 billion in credit from the state-owned KfW development bank, approved earlier in the year.

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