Tui reports 98% fall in revenue but remains positive for 2021

Tui reports 98% fall in revenue but remains positive for 2021

After posting a €1.1bn (£995m) loss for Q2, Tui remains positive as it reveals a 145% increase in 2021 bookings.

This summer saw a 98% dive in revenue as bookings fell 81% and the group made plans to shut 166 High Street stores in the UK and Ireland.

Tui has received €1.2 billion from the German government to stay afloat and it plans to cut costs by 30%.

“We are targeting a permanent annual saving of more than €300 million with the first benefits expected to be delivered from FY21 and full benefits to be delivered by FY23,” said the group.

“Negotiations have begun within respective business units and we expect FY20 restructuring costs to be in the region of €240 million in FY20, €40 million in FY21 and €10 million in FY22.

“In two years’ time, TUI Group will emerge stronger, leaner, more digitalised and more agile, in what is likely to be a much more consolidated market.

The company announced in May that it would cut around 8,000 jobs globally to save costs.

Shares in Tui (LON: TUI) are trading down over 4% at 351.90 (1007GMT).