German travel giant TUI insisted it was confident of a summer recovery despite reporting a net loss of €803 million in the first quarter of its fiscal year on Tuesday.

In a tourism sector devastated by the coronavirus pandemic, TUI reported an 88 per cent drop in revenue to €468 million between October and December.

The group, which has received state support since the beginning of the outbreak, also reported an adjusted operational loss of €699 million, further worsening its usual negative balance in the low-season. 

Yet TUI CEO Fritz Joussen said he remained confident ahead of the summer, noting as a cause for optimism the speed of the vaccination rollout in Great Britain, one of the group’s key markets.

TUI has so far recorded 2.8 million bookings for summer 2021, around 56 per cent of the amount recorded at this stage of 2019.

TUI has so far recorded 2.8m bookings for summer 2021, around 56% of the amount recorded at this stage of 2019

“As expected, customers will book their summer holidays much later this year than in normal years. However, demand remains strong, people want to travel,” said Joussen.

Average prices have also risen by 20 per cent compared to 2019, while the group has trimmed its tourism offerings by a fifth.

In January, TUI shareholders approved a third government bailout package of €1.8 billion, which included the option for the state to become a shareholder.

Even before the latest package, Berlin had already poured €3 billion of public money into the crisis-hit group.