Hanover-based Tui has agreed a two-year extension with 19 private banks and KfW, the German state-owned investment bank.

In addition, Tui said it had €2.9 billion in available funds following the sale of 21 hotels to the Riu family in the form of undrawn credit lines. 

Tui chief executive Fritz Joussen said: “We are now financed in the medium term until summer 2024. This creates stability and flexibility as long as Corona restrictions still affect the business and markets.

“Tui is returning to the growth path. We are well positioned with our tour operators, hotel and cruise brands and we will be more efficient and digital after the Corona crisis. The banks support our strategy, our path of transformation and see Tui’s strengths after the Corona crisis.”

He added trading was good: “The 2021 summer season has started well, demand for holidays and travel remains high in all of Tui’s European markets. Vaccinations continue to be the key to more freedom for all and also for travel.”

Tui’s credit facility currently stands at €4.8 billion, but due to Brexit, credit from an unnamed British bank of €80 million cash and a €25 million guarantee line cannot be extended beyond summer 2022.