TUI Group said summer 2021 holiday bookings are up 145 percent in its third quarter earnings release on Thursday, also adding that some of the momentum is customers rebooking.

The numbers include hotel, cruise and resort bookings.

“Summer 2021 capacity has been cautiously adjusted by 20%, with flexibility to adjust as we gain more visibility,” the company said. 

The report had the company reporting group revenue of 75 million euro, down 98 percent, reflecting the business standstill for most of the quarter.

“We have reached an agreement with the German Federal Government for an additional stablisation package for €1.2bn. The package strengthens our liquidity position and would provide sufficient liquidity in this volatile market environment, to cover TUI’s seasonal working capital swing through Winter 2020/21 and thereafter, should there be further periods of travel restrictions and disruptions related to COVID-19,” the company said.

The company hopes to have over 50 percent of hotels open again in the third quarter, while short cruises have already started. 

TUI said it is reducing overhead cost by 30 percent annually.

“A comprehensive review of our activities across every business unit and group companies worldwide to identify benefits and savings has been triggered. We are targeting a permanent annual saving of more than €300m with the first benefits expected to be delivered from FY21 and full benefits to be delivered by FY23. Negotiations have begun within respective business units and we expect FY20 restructuring costs to be in the region of ~€240m in FY20, ~€40m in FY21 and ~€10m in FY22. In two years’ time, TUI Group will emerge stronger, leaner, more digitalised and more agile, in what is likely to be a much more consolidated market.”