Speaking on a call with the media today (February 12), Fritz Joussen accepted Tui “cannot go on like always”.

“David Burling [chief executive markets and airline] has a huge challenge to take out costs… This includes distribution costs, so this means more direct [selling], more mobile.

“We have invested in excursions and experiences.”

The company today reported underlying Q1 losses more than doubling to €83.6 million in its first quarter after an "unusually long, hot summer”.

However, Joussen explained: “In the year before we had the Monarch and Air Berlin bankruptcies, so the year before was very strong. We’re working against strong comparatives. The market and airline looks worse than it is.”

Underling Ebita (earnings before interest, taxes and amortisation) for cruise was up more than 25% for the quarter.

Asked whether Tui would be introducing cost savings, Joussen said: “Of course. David Burling has a big challenge. It’s not like we can go on like always. We need to take advantage of harmonisation and platforming the business even more than we have done.”

However, Joussen added that “laying people off” was not a primary focus.

“We have different challenges in different markets,” he said.