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by Stephan Bauer, Euro am Sonntag
GThe latest news from TUI boss Friedrich Joussen has rarely been announced. First, the misery with Boeing 737 Max jets cost Europe’s largest tour operator hundreds of millions of euros. Then Corona came and gave the tourism industry the worst nightmare imaginable. This is probably why Joussen and his team accompanied the first holiday flights of the season towards Mallorca with an optimistic message: the travel program has been resumed – at least in part.
Hotels are opening step by step, TUI plans to end Corona sleep for half of the accommodations in early July. The capacities remain drastically curtailed for the time being. In the fourth business quarter – from July to September – TUI will only have commissioned 30 percent of its original capacity.
Nevertheless, the company sees a glimmer of hope after the collapse of business since the lockdown in mid-March. Customers continued to place great emphasis on vacation travel, with the recent easing of travel restrictions in Europe, bookings for summer have risen noticeably in recent days.
“The summer program is 25 percent fully booked,” said Joussen. The prices have climbed by 14 percent compared to the previous year. What’s more, the winter program in the UK is six percent above the previous year, prices are rising and the prospects for summer 2021 are promising.
Economy measures announced
Because of the start of business, the group expects “a positive contribution to the fixed costs affecting cash”. The wording reminds us that TUI can only work thanks to a state-guaranteed loan package worth 1.8 billion euros. The fixed costs are to be reduced further. Joussen has set itself the goal of reducing administrative costs by 30 percent. 8,000 jobs worldwide are affected. Despite the fundamentally extremely difficult situation, stockbrokers celebrated the comeback with a firework display. This makes it clear to investors that the stock is one of the most speculative bets on overcoming the pandemic on the price list.
Leap: The stock rose. According to TUI, the prospects for 2021 are promising. For the brave, investors consider the tight stop price.
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Image sources: TUI