Europe’s largest tour operator TUI Group continues to struggle with continued restrictions on international travel in the UK and Germany.

The company published a report for the first half of the financial year (from October 30, 2020 to March 31, 2021), where it described in sufficient detail the risks facing the global travel industry, the German media write.

In particular, the report notes that due to current travel restrictions, TUI still cannot say with certainty when it will be able to fully resume operations.

“Considering the current funding sources and low income from operations for 6 months, due to the epidemic; In the absence of an increase in the number of bookings and customer payments, TUI will not have the financial resources to continue its operations without additional support measures or short-term sale of assets. In general, without additional external support, there is a risk that the TUI group will not be able to continue its activities and fulfill its obligations, ”the document says.

In particular, the largest tour operator in Europe may have difficulties with servicing loans issued under the guarantees of the German government. In this regard, the parties need to revise the terms of the previously concluded agreement.

“In the event that a further suspension of ‘compliance with the terms of the agreement’, which expires on September 30 and beyond, cannot be achieved, TUI may begin to experience payment difficulties. In addition, both tranches of KfW loans in the amount of EUR 4.6 billion will again need to be refinanced in 2022. As there is uncertainty about the future development of the business, there is a risk of not finding credit in the banking and financial markets, the government may have to take additional measures. Our executive committee continues to monitor the main risks during the suspension of travel, especially the risks affecting the demand and the financial profile of the group (fluctuations in value and cash flow), ”the document says.

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Recall that in 2020, TUI Group was able to receive financial support in the amount of about 5 billion euros under the guarantees of the German government. The money was used to prepare for the summer season and to ensure the continuous operation of the tour operator. However, continuing travel restrictions in Germany and the UK, which are the main markets for the tour operator, are calling into question the implementation of the 2021 summer programs.

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My name is Anastasia Shevtsova. I live in Kazan, I like to travel to foreign countries and Russia. Travelling inspires me, helps me to know this boundless world and myself, gives me interesting acquaintances and opens new horizons. I can combine travel with my work, because to work I need only a laptop and the Internet.

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