The tourism giant TUI and the German Government agreed on a second massive aid package on Wednesday to show how the effects of the coronavirus pandemic are still affecting the industry.
The Hanover-based company has agreed a package worth 1.2 billion euros with the German public lender KfW to strengthen the company in the 2020/21 winter season.
The new funds complement the government loan of 1.8 billion euros agreed in April.
The company had previously announced that it would cut 8,000 jobs worldwide to cut costs.
TUI’s hotels, flights and cruise lines were empty at the height of global lockdowns and struggled to reopen as key destinations like Spain saw viral infections spike and further quarantines.
The extra money means TUI would have credit lines of 2.4 billion euros, according to the company. The new funds include loans of EUR 1.05 billion and convertible bonds of EUR 150 million.
“The stabilization package of 1.2 billion euros strengthens TUI’s position and would offer sufficient liquidity in this volatile market environment,” said a statement by TUI.
CEO Fritz Joussen said the group had already “introduced massive cost reductions in good time and implemented them quickly and consistently”.
“However, no one knows at present when a vaccine or medication will be available and what effects the pandemic will have in individual markets in the coming months,” Joussen added.
“Therefore it is right and important to take further precautions together with the German government.”
TUI announced its results for the third quarter on Thursday.
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