TUI to apply for state aid, suspend most travel operations

TUI said on Sunday that it was applying for state aid guarantees as it suspended the vast majority of its travel operations and withdrew 2020 guidance due to the coronavirus.

The temporary suspension of its package travel, cruises and hotel operations was "aimed at contributing to global governmental efforts to mitigate the effects of the spread of the COVID-19".

In light of the pandemic, the travel company said it had decided to withdraw the 2020 guidance given in February and would not be issuing new guidance.

"Due to the unprecedented escalation of COVID-19, the board of TUI are continuously evaluating the situation and are considering a variety of actions to support our customers, colleagues and stakeholders," it said.

TUI said it has cash and available facilities of about €1.4bn and that its performance in the year to date had been in-line with expectations prior to the virus outbreak.

"We are taking substantial cost measures to mitigate the earnings effect. Moreover, we have decided to apply for state aid guarantees to support the business until normal operations are resumed."