The UK’s biggest tour operator posted losses of £747m in the first half of 2020, compared to £255m in the same period 12 months previously. The Anglo-German company said: “We are targeting to permanently reduce our overhead cost base by 30 percent across the entire group. This will have an impact on potentially 8,000 roles globally that will either not be recruited or reduced.”
Fritz Joussen, chief executive of the firm, said the company should “emerge from the crisis stronger”.
He added: “It will be a different Tui and it will find a different market environment than before the pandemic.
“This will require cuts: in investments, in costs, in our size and our presence around the world.
“We must be leaner than before, more efficient, faster and more digital.”
The company’s report said: “The tourism industry has weathered a number of macroeconomic shocks throughout the most recent decades, however the COVID-19 pandemic is unquestionably the greatest crisis the industry and Tui has ever faced.”
It added that losses also came as a result of the grounding of the Boeing 737 Max aircraft after two crashes with other airlines.
Transport minister Grant Shapps warned British sunseekers they were taking a chance on the direction of the coronavirus outbreak if they booked a summer holiday this year as the foreign office is still advising against all travel abroad.
Mr Shapps said: “Right now you can’t travel abroad.
“If you are booking it then you are clearly, by the very nature, taking a chance on where the direction of this virus goes and therefore where the travel advice is in the future.
“That is not something people would want to take lightly of course.”
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Published at Wed, 13 May 2020 05:43:00 +0000