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TUI's revenue falls 58% following Covid-19 restrictions
StockMarketWire.com
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TUI's revenue for the year ended 30 September fell 58% as a result of Covid-19 restrictions over the summer months, but the travel operator is taking measures to be "stronger, leaner, more digitalised".
According to its full year results, adjusted revenue fell from €18.9 billion to €7.9 billion, with an underlying earnings before interest and taxes loss of €3 billion from a profit of €3.9 billion on the previous year.
Over the year, customer volumes were 8.1 million, down 62% on the prior year's 21.1 million, despite its markets & airlines business opening the year with a record booking position and a strong outlook prior to the pandemic.
As a result of the increasing travel restrictions and the associated later booking behaviour of some customers, Tui expects to operate an adjusted capacity of 20% for Winter 2020/21 which will be weighted towards its financial Q2. It continues to expect to operate an adjusted capacity of 80% for summer 2021.
The company said the "transformed TUI will be leaner, less cost, less capital intensive and more digital, driving return to profitable growth", and that it is "strongly positioned to benefit from market recovery, resuming growth trajectory". It added that optimised investments and accelerated digitalisation will "increase agility and strengthen TUI's competitive position".
Its €0.54 dividend was suspended for the year as required under the terms of German Support Packages.
Story provided by StockMarketWire.com
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