Turnover of TUI plummeted by 98.5 percent year-on-year to 72 million euros (85 million U.S. dollars) in the third quarter (Q3) of the company’s fiscal year from April to June, the Germany-based tourism giant announced on Thursday.
TUI, one of the world’s largest tourism companies, recorded a quarterly loss of 1.45 billion euros, down from earnings of 48.5 million euros between April and June last year, according to the company.
All travel activities by TUI had been stopped in mid-March due to worldwide travel warnings and restrictions caused by the COVID-19 crisis. The interruption of TUI’s business applied to almost the entire reporting period, said the company.
However, TUI had “successfully resumed its travel activities in all European markets” from mid-June onwards. Due to increased hygiene and safety measures in aircraft, during transfers and in the company’s hotels and clubs, the “restart from Germany was successfully implemented,” the company noted.
On Wednesday, TUI announced an additional governmental loan of 1.2 billion euros to cope with the effects of the COVID-19 crisis. Already at the beginning of April, TUI was granted an emergency loan of 1.8 billion euros by the state-owned German development bank KfW.
“With the second government credit line, we are prepared if the pandemic again has a significant impact on tourism,” said Friedrich Joussen, the company’s chief executive officer, on Thursday. (1 euro = 1.18 U.S. dollars)