TUI Group has extended its existing credit lines until summer 2024 as the company seeks to insulate itself from the ongoing impacts of the Covid-19 pandemic.

The company said the decision gives it more time and flexibility and strengthens TUI in a market environment with continued travel restrictions.

The objective remains a rapid repayment of the government loans as soon as more holiday destinations can be travelled to in a stable manner again and the successful relaunch of tourism continues in a sustainable manner,” explained a statement.

As expected, the summer business, which has got off to a good start, is currently focused on a few holiday destinations such as Greece, Spain and Cyprus, domestic tourism and cruises by TUI Cruises.

The major hotel and club brands of the group – RIU, TUI Blue and Robinson – are also doing good business, TUI added.

TUI has agreed with the 19 private banks and KfW to extend the maturity of the credit line totalling €4.7 billion by two years to summer 2024.

As of July 26th, TUI had pro forma liquid funds of around €2.9 billion at its disposal (considering the announced sale of 21 properties to the Riu family an in the form of undrawn credit lines).

TUI chief executive, Fritz Joussen, said: “TUI is returning to the growth path.

“We are well positioned with our tour operators, hotel and cruise brands and we will be more efficient and digital after the Corona crisis.

“We are now financed in the medium term until summer 2024.

“This creates stability and flexibility as long as coronavirus restrictions still affect the business and markets.”