From Breakingviews - Tui’s pandemic payback sets path for takeoff
releases it from government clutches and sets it up for brighter skies. The travel operator said on Friday it plans to issue new stock to raise 1.8 billion euros, at the high end of the 1.6 billion to 1.8 billion eurosin December by Chief Financial Officer Mathias Kiep. Like many travel companies Tui required funds to keep it afloat during the pandemic when holidays were cancelled and flights were grounded. The 2.7 billion euro company received a staggering 4.
Storm clouds are parting for the travel industry. Tui’s revenue is expected to soar by over 17% this year to top 19 billion euros, according to Refinitiv estimates. Meanwhile, its 2024 sales are forecast to exceed pre-pandemic levels. The company plans to fully repay a German government stake of 750 million euros and redeem its credit line from state lender KfW, while also paring down its use of a cash facility.
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