The European travel giant on Tuesday (17 May) confirmed it would launch a new capital increase, with the aim of "returning to normality quickly and focusing on new growth".

Proceeds from the capital increase along with existing cash resources will be used to repay, in full, €671 million secured from the German government’s economic stabilisation fund.

Tui will issue around 162 million new shares, equivalent to around 10% of the group’s share capital. New shares will be offered exclusively to institutional investors.

In addition, the group will also reduce outstanding German central bank (KfW) credit lines by €336 million to €2.1 billion as the Covid crisis continues to ease.

In March, Tui said it would return around €700 million in state aid during April. "Tui continues to execute its goal of rapidly deleveraging the group, reducing interest costs and further reducing Covid state aid," said Tui in a statement on Tuesday.

"We are implementing what we announced and committed to: the further repayment of the Covid aid, and we are doing so as fast as possible," said Joussen. "Our goal is to return to normality quickly and focus on new growth. We are in stable waters, the market is intact, and we expect a strong summer of travel and a good fiscal year.

"For the current full year 2022, we therefore expect to return to significantly positive earnings. With the transformation and realignment of the group, Tui is leaner, more digital and more efficient. This is the basis for continuing to steadily and swiftly reduce the Covid financial support and lower our debt and interest costs."