Holiday giant TUI said it would raise cash to repay state support during the Covid pandemic as it posted a return to annual profits and said underlying earnings would increase significantly in 2023, despite market uncertainty.
TUI reported underlying earnings (EBIT) of €409m for the year to September 30, compared to the €2bn loss a year earlier as travel rebounded from the Covid pandemic. Revenue more than trebled to €16.5bn.
The company said it planned to operate a winter programme at 84% of pre-pandemic levels, with bookings for the season up 134% against last year.
“Positive trading momentum has continued into FY23 for Holiday Experiences with volumes and booked occupancy in all segments well ahead of prior year,” the company said.
In an announcement released on Thursday, TUI said it would use the capital increase to repay Germany’s Economic Stablisation Fund (WSF) €730-€957m.
In return it will receive back the equivalent rights to its shares. It also plans to cut it credit lines from development bank KfW.
Reporting by Frank Prenesti for Sharecast.com
