TUI Secures €1.8 Billion Loan from Germany

Sunday 29th of March 2020

TUI Secures €1.8 Billion Loan from Germany

On 27th March, the largest travel company in the world TUI AG received the approval of the German government for a bridging loan of 1.8 billion euros from the KfW. The funds of Germany's state-owned development bank are to be used to increase TUI's existing credit line with its banks amounting to 1.75 billion euros.

TUI had decided to apply for the KfW bridging loan due to the unprecedented effects of the COVID 19 pandemic until normal business operations could be resumed. Following travel restrictions and travel warnings from almost all countries, the Group had to suspend its touristic offers in mid-March, including packaged tours, cruises, and hotel operations, until further notice.

TUI Group CEO Fritz Joussen.: TUI is a very healthy company. We were economically successful before the crisis and will be again after the crisis… We are currently facing unprecedented international travel restrictions. As a result, we are temporarily a company with no product and no revenue. This situation must be bridged.

January 2020 was the strongest booking month in the company’s history. In the past financial year 2019, TUI Group generated sales of around 19 billion euros and operating results of 893 million euros, including the costs of almost 300 million euros for the flight ban on the Boeing 737 MAX.