The German government has approved the loan from KfW, which will be used to increase the operator’s existing credit line to €1.75 billion.

Tui must waive dividend payments for the duration of the bridge loan, giving it access to financial resources and credit lines of €3.1 billion.

“The commitment of the KfW bridge loan is an important first step for Tui to successfully bridge the current exceptional situation,” said Fritz Joussen, chief executive of the Tui Group.

“Our thanks go to the German Federal Government, the German parliament, the Government of Lower Saxony and KfW. They have acted quickly and in a solution-oriented manner in the interest of our customers, employees and the company.”

This comes as the Covid-19 pandemic sees numerous countries lockdown their borders and passengers numbers plummet. 

Tui suspended its tourism operations in mid-March until further notice.

Joussen added: “Tui is a very healthy company. We were economically successful before the crisis and will be again after the crisis.”

Over the 2019 financial year, Tui Group generated €19 billion in turnover.