DGAP-News: TUI Group returns first credit lines of around 700 million euros


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TUI Group returns first credit lines of around 700 million euros

30.03.2022 / 10:30

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TUI Group returns first credit lines of around 700 million euros

First return of credit lines to the German state and private banks on 1 April

Liquidity remains high at 3.4 billion euros even after return

State credit lines granted were a safety buffer during the pandemic and lockdown - now undrawn in line with the recovery of the business

Travel restrictions largely lifted and sustained stable business development: TUI well positioned for growth in the post-Corona period

Demand for holidays and booking momentum strong: Summer 22 currently at 80% of Summer 19 bookings (previously at 72% at Q1 2022 beginning of February)

Since the end of January 2.8 million additional bookings for Winter 21/22 and Summer 22

Customers invest more in holidays: average prices significantly higher for Winter 21/22 (+14%) and Summer 22 (+20%)

Hanover, 30 March 2022. TUI is well positioned for the post-Corona period and expects a stable business development for 2022, especially for the main months of the summer season. As announced and agreed, TUI is also returning the first part of the credit lines provided during the pandemic on 1 April 2022. The financial resources made available by the German government and private banks in the framework of the three stabilisation packages will then be reduced by around 700 million euros. A large part of this refers to the KfW Revolving Credit Facility (RCF). This "rescue umbrella" was important during the pandemic and the associated massive restrictions on our business. Now is the right time to reduce the first credit lines.

Fritz Joussen, CEO TUI Group: "TUI was a very healthy company before the pandemic. The worldwide travel restrictions, especially at the beginning of the pandemic, almost completely deprived us of our business basis. That is why temporary aid was important and right. Thanks to the credit lines from the German federal government and from the private banks and the contribution of our shareholders, we have steered TUI safely through its most serious crisis. I would also like to thank our employees for their outstanding commitment over the past two years. We are on course and the trends are intact. People want to travel, we see the demand in bookings and expect a good Summer 22 at TUI. The company is leaner, more digital and more efficient after the pandemic and transformation. The pandemic aid from the state was mostly interest-bearing credit lines. In recent weeks, we already stopped using the state credit lines. As announced, we are now returning part of this state aid - this is another important step towards normality and to refocus TUI for growth."

Liquidity remains high even after return of credit lines

The KfW RCF credit line, which was still drawn at around 500 million euros at the beginning of February, could be reduced to zero at today's date due to the expected good operational performance. As of 28 March, TUI had liquidity of 4.1 billion euros. Less the partial return on 1 April 2022, the liquidity stands at 3.4 billion euros. The company returns
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