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TUI Slips To Hefty Loss In FY20; Expects To Return To Profitable Growth From FY22 Onwards

(RTTNews) - Tour operator TUI AG (TUIFF.PK) reported Thursday that its fiscal 2020 loss attributable to shareholders was 3.08 billion euros, compared to last year's profit of 532 million euros, hurt by coronavirus pandemic.

Underlying loss per share were 5.45 euros, compared to profit of 0.89 euro a year ago.

Reported EBIT was loss of 2.96 billion euros, compared to profit of 769 million euros last year. Underlying EBIT loss was 3.03 billion euros, compared to profit of 894 million euros last year.

Revenue declined 58 percent to 7.95 billion euros from 18.93 billion euros last year reflecting covid-19 travel restrictions during Summer 2020.

Full-year customer volume of 8.1 million was down 62% on prior year. Since restart of operations in mid-June, the company reported more than 2 million customer volume.

The dividend has been suspended as required by terms of German Support Packages, and the company said it still feels unable to announce specific guidance in light of the ongoing pandemic situation.

However, the company expects fiscal 2021 to be a year of transition and for the Group to return to profitable growth from FY22 onwards.

As a result of the increasing travel restrictions caused by the rising number of infections and the associated later booking behaviour of some customers, the company currently expects to operate an adjusted capacity of 20% for Winter 2020/21 which will be weighted towards financial Q2.

The company continues to expect to operate an adjusted capacity of 80% for Summer 2021, which will be flexed as it gains more visibility on future imposed travel restrictions.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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