By Michiel Willems | cityam.com
Travel giant Tui said this morning it is planning a £936m cash call to cut debts as it said bookings were bouncing back thanks to the relaxation of travel restrictions.
The group said the fundraising will help boost its balance sheet and allow it to repay emergency Government loans.
In an update alongside the cash raise, Tui said it saw 5.2m bookings over the summer, a 1.1m increase since its August update.
It said bookings were “well ahead” in Germany and the Netherlands, though travel rules have been lifted later in the UK.
The group added it had a “very encouraging pipeline” of 1.6m bookings for summer 2022, which is overall up 54 per cent on 2019 levels with a 15 per cent hike in average selling prices.
Tui chief executive Fritz Joussen said: “We want to, we can and we will find our way back to economic strength. We are working on this relentlessly.
“The capital increase is a further step. We want to repay the Government loans quickly.”
He added: “The improved capital structure creates a solid foundation and enables us to take even better advantage of the opportunities arising from the recovery of the industry.”