Tui suspends 'vast majority' of global travel operations
James ChappleTui has temporarily suspended the “vast majority” of its global travel operations as part of efforts to mitigate the spread of the Covid-19 coronavirus.
The move, said Tui, would extend to its package travel, cruise and hotel divisions “until further notice”.
It comes after the group announced at the weekend sweeping changes, alterations and cancellations to its worldwide programmes.
“In this rapidly changing environment, the safety and welfare of our guests and employees worldwide remains of paramount importance,” said the operator in a statement.
“Thus Tui Group has decided, in line with government guidelines, to suspend the vast majority of all travel operations until further notice.
“This temporary suspension is aimed at contributing to global governmental efforts to mitigate the effects of the spread of Covid-19.”
Tui has withdrawn its financial guidance for its 2020 financial year, and declined to issue new guidance owing to the ongoing crisis.
It said its board was continuously evaluating the situation and considering a variety of actions to support customers, colleagues and stakeholders following the “unprecedented escalation” of the spread of Covid-19.
The group says it has “cash and facilities” amounting to around €1.4 billion, and that year-to-date performance had been in line with expectations prior to the emergence and spread of the coronavirus.
“We are taking substantial cost measures to mitigate the earnings effect,” said Tui, adding: “Moreover, we have decided to apply for state aid guarantees to support the business until normal operations are resumed.”
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