Tui confirmed a continuation of an “encouraging” booking momentum as it launched a €1.8 billion capital increase to pay outstanding German state aid provided during the pandemic.
The company said it intends to use the net proceeds of the rights issue to also cut interest costs and debt.
This will allow Europe’s largest travel group to focus on growth and further market recovery.
The capital increase and “significant return” of government funding allows for a “considerable improvement” in Tui’s credit metrics and reduces ongoing interest costs, according to the group.
Tui Group chief executive Sebastian Ebel said: “The full repayment of the corona state aid was our declared goal.
“With the capital increase now approved, we are taking the final step with the WSF [state] aid and fulfilling our commitment.
“We will use the proceeds to repay the aid received from the WSF, including interest.
“Tui thus has a good balance sheet structure again and we are doing everything we can to further improve the group’s profitability.
“We are reducing interest costs and as a result creating a solid basis for the future.
“Our goal is clear – we want to grow profitably again and gain more market share with additional customers and new products.
“The booking trend also continues to be very encouraging.”
The capital increase statement added: “Tui confirms a continuation of its encouraging booking momentum which it reported at its Q1 results on 14 February 2023.”