Tui Group has said it is “well positioned” for the post-Covid-19 period and expects a stable business development for 2022, especially during the summer season.
As such, the company said it was returning up to €700 million in credit lines provided during the height of the pandemic.
The financial resources were made available by the German government and private banks as part of three stabilisation packages.
A large part of the cash was offered in the form of a revolving credit facility from German bank KfW.
This “rescue umbrella” was “important during the pandemic and the associated massive restrictions on our business,” Tui said in a statement.
However, the company is now in a position to return the money.
Fritz Joussen, chief executive of Tui UI Group: “Tui was a very healthy company before the pandemic.
“The worldwide travel restrictions, especially at the beginning of the pandemic, almost completely deprived us of our business basis.
“That is why temporary aid was important and right.
“Thanks to the credit lines from the German federal government and from the private banks and the contribution of our shareholders, we have steered Tui safely through its most serious crisis.”
He added: “People want to travel; we see the demand in bookings and expect a good summer 2022 at Tui.
“The company is leaner, more digital and more efficient after the pandemic and transformation.
“The pandemic aid from the state was mostly interest-bearing credit lines.
“In recent weeks, we already stopped using the state credit lines.”
The KfW credit line, which was still drawn at around €500 million at the beginning of February, could now be reduced to zero.
As of March 28th, Tui had liquidity of €4.1 billion.
