Finance

TUI to raise €1.1bn

By Patrick Whyte Oct 6, 2021 7:12am
Germany R&R Tour Operators Tourism

Insight Comment
Having been bailed out multiple times by the German government, TUI is trying to put itself on a more even financial footing. Comments from the company alongside the capital raise announcement suggest demand is returning to normal, painting a more optimistic view for next summer. 

Vertically integrated tour operator TUI Group is looking to shore up its finances again by raising €1.1 billion.

The funds will be used to pay down debt, including a government loan.

"The offering will enable us to take a significant step forward, increasing our ability to take advantage of the business opportunities resulting from the easing of Covid-19 restrictions. It will provide us with a capital structure more appropriate for more normal operating conditions,” said CEO Fritz Joussen.

The capital raise comes as the holiday giant reported an improvement in bookings in some of its key markets.

Bookings in Germany and the Netherlands have actually been ahead of 2019 levels in recent weeks. On the back of better trading, TUI thinks that summer 2022 volumes will likely be close to normal levels.

 

Germany R&R Tour Operators Tourism Tui news Hospitality Investor Homepage