Tui reports huge loss as Brexit worries mount
Tui reported a loss of more than €3 billion in 2020 and warned the next 12 months will be ‘a year of transition’ for the business.
The operator said it expects to return to profitable growth from 2022 as travel begins to resumes, but said immediate challenges remain, including fears of a no-deal Brexit.
It said it plans to operate of 80% of summer 2021 capacity, with current bookings down 10% on the same point last year.
But UK bookings are up 19% ‘reflecting the typical earlier booking behaviour for the region’.
Average selling price have climbed 14%.
The relatively positive outlook for summer was in contrast to winter where Tui will operate just 20% of its capacity.
The financial results laid bare the catastrophic year for the busines – and for the wider industry – with revenue down 58% and customer volume down 62% to 8.1 million.
Since the restart of operations in mid-June, it said more than 2m customers have travelled with the company.
The company said it would not provide guidance for the next year.
"There is still considerable uncertainty regarding the likelihood and nature of further lockdowns and travel restrictions over the next few months, the distribution of an effective vaccine and the shape of the economic recovery," Tui said.
"As a result the Tui Executive Board refrains from issuing new guidance for the Financial Year 2021 under the current circumstances.
Tui said uncertainties also remain around Brexit.
"A main concern remains whether our airlines will continue to have full access to EU airspace after the transition period," it said. "We are continuing to address the importance of there being a special and comprehensive agreement for aviation between the EU and the UK post Brexit to protect consumer choice with the relevant UK and EU decision makers."
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