Tui swings to FY loss as revenues dented by Covid crisis

Travel company Tui said on Thursday that it swung to a full-year loss, with revenues down sharply as the Covid-19 pandemic and related restrictions continued to take their toll.

In the year to 30 September, the company swung to an underlying EBIT loss of €3bn from earnings before interest and tax of €894m the year before, as revenues slumped 58% to €8bn.

Full-year customer volumes were down 62% on 2019 to 8.1m, which Tui said was a direct result of imposed travel restrictions.

The company also said it was lifting its cost savings target from €300m to €400m to help deal with the impact of the pandemic.

Looking ahead, it was more upbeat about the outlook, noting that demand for travel next summer was on the rise and 50% of its May 2021 programme was booked.

Last week, the travel operator clinched a financial support package with a group of investors that included the German government worth €1.8bn.