TUI sinks to $1.3 bln loss as tourists stay home

A holiday season where few travelled abroad drove TUI to a $1.3 billion loss in its third quarter and wiped out revenue.

The world's largest tourism company said Thursday (August 13) it was considering all options to withstand the pain.

TUI secured a second credit line from the German government this week and said liquidity now stood at $2.8 billion.

The travel firm had also already agreed a $2 billion state-backed loan in April, and said the cash gave them confidence it could survive to 2021.

That's despite low travel demand and the upcoming winter season where holiday companies usually lose money.

TUI also said it resumed holidays in mid-June and demand had returned, which helped strengthen its finances.

Chief Executive Fritz Joussen said he did not know whether TUI would need the extra credit line, but wanted to be prepared for the worst case scenario.

The company also said it was making progress with cost cuts needed to help it withstand this year's woes.

It warned in May that it would need to shed 8,000 jobs and save just over $350 million a year.

The global health crisis continues to cause havoc for the travel industry.

TUI said bookings for the current summer period are down 81% from last year though next summer looked more promising they claimed, with bookings up 145%.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting