TUI Group to shed jobs ahead of slow restart
In a mixed-bag of results, TUI Group has said it will shed as many as 8,000 jobs it seeks to cut costs by 30 per cent in the wake of the coronavirus pandemic.
However, the company said it was preparing to return to operation, with the first hotels on Sylt and in Mecklenburg-Western Pomerania to open their doors for guests in the coming days.
The move comes two months after almost all business units had to be shut down due to the worldwide travel bans.
Fritz Joussen, chief executive of TUI Group, said: “Summer holidays in Europe can now gradually be made possible again – responsibly and with clear rules.
“Organised travel offers great advantages especially now: with the trusted TUI brand, we offer safety, local support and, in special situations, guarantee the return journey home.
“Together with the destinations and our partners we have developed extensive measures to protect our guests.”
TUI Group reported a loss of €740 million (£650 million) in the first three months of the year, requiring a bailout of €1.8 billion from the German federal government.
The majority of holidays have been suspended until June, but some pickup is then expected.
Joussen added: “The demand for holidays is still very high - people want to travel.
“Our integrated business model allows us to start travel activities as soon as this is possible again.
“The season starts later, but could last longer.”
TUI Group said 35 per cent of the 2020 summer programme is currently booked.
As at May 10th, the group had financial resources and available credit facilities of around €2.1 billion.
“We were very successful economically before the crisis and will be again after the end of the crisis.
“We have a functioning and successful business model and over 21 million loyal customers who trust our strong brand,” concluded Joussen.