TUI stems cash burn as bookings surge on border reopenings

TUI AG stopped burning cash as holiday bookings surged following European government moves to relax travel restrictions. The world’s biggest tour operator reported cash inflows during the three months through June of E320m, excluding financing costs, the first time it’s recorded a positive number since the onset of the Covid-19 pandemic. That’s after revenue surged to E650m in the quarter from E72m a year ago. “Especially in Germany and in the continental European markets, the current booking figures show a high pent-up demand,” TUI CEO Fritz Joussen said Thursday. A further easing of UK travel rules should lead to another booking spree in the three months through September, he said. Despite the positive free cash flow, TUI still posted a loss of E940m as travel remained significantly below pre-pandemic levels. While the company has added 1.5m summer bookings since May, capacity for the high season remains at about 60% of 2019 levels. Still, the company’s liquidity position is “very safe,” with E3b available, Joussen said. While the winter season remain uncertain, revenue should be boosted by existing reservations and short-term bookings yet to come, he said.<br/>