Tui have revealed that they have lost €1.1bn in the third quarter after the travel giant was forced to halt holidays amid the pandemic.
Compared to last year the company made earnings of €102.3m in the same period, but despite the losses Tui insists demand is coming back.
Cost cutting helped to limit losses as Tui cut costs by 30% which cost 8,000 jobs globally, and closed 166 high street stores in the UK and Republic of Ireland.
The closure of their operations due to the pandemic saw revenues crash by 98% to €75m in their trading update.
Since holidays resumed Tui has seen 1.7m new bookings, with new bookings for 2021 which are up by a “very promising” 145%.
Tui group said, “Full-year 2020-21 will be a year of transition and we expect a normalised level of business from full-year 2021-22.”
Fritz Joussen, chief executive of Tui said, “Our integrated business model is proving its worth even in the crisis.
“The implementation of our hygiene and safety concepts and the relaunch of the business could be implemented in the flight, hotel, ship and destination segments from a single source – this has given our guests a high level of security.”
He added, “With the second government credit line, we are prepared if the pandemic again has a significant impact on tourism.”