- Travel company TUI has reported a drop of 98% in group revenues due to the suspension of its business for most of the quarter but said that since lockdown restrictions had eased, signs of customer demand were 'encouraging'.

In its quarterly statement 1 October 2019 to 30 June 2020, the travel company said group revenue of €75m reflected its business being at a 'standstill' for most of the quarter.

An underlying EBIT loss of €1.1bn in the third quarter reflected the suspension of the business for most of the quarter, as well as impairments triggered by COVID-19 and net costs arising from ineffective hedging contracts.

Fixed costs were reduced to around €237m per month, as the business moved into 'crisis mode', the company said.

TUI re-opened 55 hotels in the quarter as lockdown restrictions were loosened from mid-May and reported that while hotel volumes remain significantly lower than usual summer levels, there were 'encouraging signs' of customer demand, with average occupancy of 23%.

The company announced that bookings are down 81% for summer 2020 and said capacity plans for winter 2020-21 have been reduced by 40%.

TUI has 'cautiously adjusted' capacity for summer 2021 by 20%, and reported that bookings are currently up significantly, by 145%, as customers both rebook holidays from this summer and look to secure new holidays early.

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