The rate the German-owned operating giant will pay in interest is for the first time tied to emission reduction goals. Tui has pledged to reduce in-house airline emissions by 24%, its hotels’ impact by 46% and those from cruising by 27.5% by 2030.
It is the first time the operator has had its credit facility tied to emissions reductions. Tui will now have another two years in which to repay the loan, taking the deadline to 2026.
“The interest conditions of this revolving credit facility will in future also be linked to the achievement of the group’s emission reduction targets confirmed by the Science Based Targets Initiative [SBTi],” Tui said. “With the review and confirmation of the ambitious emission reduction targets by the SBTi, Tui is setting new standards in the tourism sector.”
The deal is with 19 banks which will fund €1.65 billion, while another bank, KfW, will proffer €1.05 billion from the “Corona stabilisation package”. Tui said the latter amount “is not to be drawn further and serves only as a buffer”.
It added: “The aim is to return this credit line quickly, but at the latest by the end of the term.”
Tui recently reported strong bookings for summer 2023, with sales “already above pre-crisis levels”.
Tui chief finance officer Mathias Kiep added: "The successful extension of our credit lines is essentially the result of the Tui Group’s operational and balance sheet recovery and a vote of confidence in our business model and future strategy.
“This lays the basis for profitable growth and we remain the industry’s pioneer in climate protection. Tui is on its way to former strength."
