KfW and TUI AG today confirmed the signing of a state aid bridging loan for 1.8 billion euros.

The loan had been committed by the German Federal Government on March 27 as part of the COVID-19 state support program.

TUI CEO Fritz Joussen said: “Our employees are rightly proud of TUI’s success in recent years and they should continue to be in the future – after this crisis We must bridge this unprecedented global situation. The German Government has acted quickly to support jobs and companies during these exceptional times. We are now preparing intensively for when our operations can resume after the Coronavirus crisis and firmly believe, people will continue to want to travel and explore other countries and cultures in the future.”

TUI’s current Revolving Credit Facility, RCF banking consortium, supported the KfW loan and the addition of the 1.8 billion euros into TUI’s existing RCF credit line.

Following the international travel restrictions, TUI decided to apply for the KfW loan in order to cushion the unprecedented effects of the pandemic until normal business operations can be resumed, the company announced.

TUI like others had to temporarily suspend its tour operator, flight, hotel and cruise programs.