Third time’s a charm: Tui gets new €1.8bn bailout from German government
Tui has today received a third bailout from the German government, meaning that federal authorities have now shelled out €4.8bn on the travel firm.
The Anglo-German giant said in a statement that it had secured an additional €1.8bn from authorities to see it through the pandemic.
The funding will comprise €1.3bn from state rescue fund WSF and state bank KfW, as well as €500m from a capital increase.
“The package became necessary due to the increasing travel restrictions caused by the rising number of infections and the associated more short-term booking behaviour of some customers”, Tui said.
It added: “The financing package strengthens Tui’s position and provides it with sufficient liquidity reserves in this volatile market environment.
“It also balances out the presumed travel restrictions until the beginning of the 2021 summer season.”
Shares in the firm dropped six per cent after the announcement.
As a result in the new tranche of funding, Tui now sits behind only Lufthansa in terms of the amount of government support it has received.
In its last set of results, the travel giant said that it had made a €1.1bn loss in the third quarter.
Along with many travel and holiday firms, the coronavirus pandemic has utterly decimated Tui, with border closures, health concerns, and travel restrictions destroying travel demand.