Tour operator TUI has temporarily suspended the “vast majority” of all travel operations due to an outbreak of Covid-19 around the world.A statement from the company said: “In this rapidly changing environment the safety and welfare of our guests and employees worldwide remains of paramount importance and thus TUI Group has decided, in line with government guidelines, to suspend the vast majority of all travel operations until further notice, including package travel, cruises and hotel operations.“This temporary suspension is aimed at contributing to global governmental efforts to mitigate the effects of the spread of the Covid-19.”
In light of the move, the executive board of the Germany-based company has also decided to withdraw the financial guidance from 2020. “Due to the unprecedented escalation of Covid-19, the board of TUI are continuously evaluating the situation and are considering a variety of actions to support our customers, colleagues and stakeholders,” added a statement.
TUI said it had cash and available facilities of approx. €1.4 billion and year-to-date performance had been in-line with expectations prior to Covid-19. The company added it would apply for state aid guarantees to support the business until normal operations are resumed. “We are taking substantial cost measures to mitigate the earnings effect,” the company added. TUI Group is a leading integrated tourism group operating in more than 100 destinations worldwide.
In financial year 2019, TUI Group recorded turnover of around €19 billion and an operating result of €893 million. The group employs more than 70,000 people worldwide. TUI offers its 28 million customers, including 21 million customers in European national companies, integrated services from a single source.