TUI lost majority of sales, cuts 8000 jobs

T

The German travel group TUI has been in deep trouble in the last broken financial year because of the malaise in the tourism sector caused by the coronacrisis. There was a net loss of more than EUR 3 billion. In order to cope with the crisis, some 8 000 jobs are being cut.

Last year TUI put a profit in the books of EUR 532 million. Sales fell this year by 58% to less than EUR 8 billion. The company operates, among other things, hotels, holiday flights and sells package tours. Almost all of these sources of income were largely wiped out by the travel restrictions against the pandemic. The number of customers dropped by 62 percent last year to 8.1 million.

TUI says the capacity for the winter season is 20 percent. This has to do with the resurgence of the number of Coronation strikes in many European countries and New lockdowns. The company does point to the news about coronavaccins, which is beneficial for the travel industry. The company from Hanover says that 2021 will be a transitional year and expects profitable growth again by 2022.

The German government has come to the aid of the tour operator with billions in emergency aid, while the costs are being cut, with significant job losses as well. CNV says that TUI’s employees can count on a “firm” social plan, including good severance pay, guidance to other work and cancellation of repayment obligations. “In the travel industry thousands of jobs are lost as a result of the coronacrisis. A good safety net is important. As far as we are concerned, the new social plan at TUI is a good starting point for the rest of the travel industry,” says the CNV professional negotiator Loes Dreschler.

About the author

Nicholas de Kramer

Nicholas de Krammer, а self-taught economic analytic with heave mathematical background. Math behind the economics (and economics behind math) is the strong side of the author. Contact him at [email protected]

Add comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Recent Posts

Categories