Tui Group, the world’s largest travel company, on Thursday said the halt on global tourism early in 2020 inflicted chaos on its profit margin as about 1.4-billion-euro ($1.65 billion) net loss in the April-June period.
The Hanover-headquartered travel operator had to cancel almost all bookings during the period.
Meanwhile, its revenue collapsed by 98.5 per cent to 72 million euros, meaning that the company failed to cover its operating costs.
Tui Chief Executive, Fritz Joussen, expressed hope of stemming the losses during the ongoing summer season, which started late and was to last until the end of September.
However, it would require convincing a vast amount of people to holiday during the current pandemic.
According to the company, holiday offerings has resumed and it has already taken 1.7 million new bookings.
In the first half of the 2019-2020 business year, up to March, the Tui Group already saw a significantly higher loss of 892.2 million euros, compared to losses of 343.1 million euros in the same 2018-2019 period.
However, its travel business was typically weaker in winter and most of its earnings in regular years come from the key summer period.
On Wednesday, Tui said it would receive an additional 1.05 billion euros as part of a German state loan to support it through the crisis.
This comes on top of more than 1.8 billion euros in credit from the state-owned KfW Development Bank, approved earlier in the year.
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