The TUI group announced that it is considering extending its summer season until the fall, given the huge accumulated demand. It expects to return to profitability in the fourth quarter of its year, from July to the end of September.
“We are seeing a huge accumulation of demand for the end of the season. The extension is sustainable and it is something that has to be agreed with the destinations. CEO Fritz Jussen told reporters today.
The company expects a strong holiday period for 2021. Also, insists on its plan to operate at 75% of its pre-pandemic capacity. That was announced today after announcing a loss of more than 1 billion euros for the first half.
The world’s largest holiday group said the increase in COVID-19 vaccinations meant Europe would reopen for travel. Current restrictions and uncertainty have so far restrained the expected increase in demand following the winter lockdowns.
We Are Optimistic For 2021
TUI, before the pandemic sent 23 million people on holiday each year. They announced that it has a total of 2.6 million summer bookings. It is 69% less compared to the corresponding period of 2019.
The group said that it is optimistic. New bookings have doubled since April and that it expects more destinations to open in the coming weeks.
“We are now at the beginning of an expected restart. “The anticipation is palpable, there are opportunities for tourism and for TUI,” Jussen said in a statement.
TUI’s optimism for the upcoming holiday season will boost travel and airlines across Europe. The company have suffered huge losses during the 14 months of pandemic restrictions.
The company announced its financial results for the first half of the year up to March 31. TUI said it had recorded a pre-tax of € 1.3 billion, with revenue shrinking 89% to € 716 million.