‘Greatest crisis’ travel industry has faced

HOLIDAY giant Tui is looking to cut up to 8,000 roles worldwide with the firm calling Covid-19 the “greatest crisis” the industry has faced.

The UK’s biggest tour operator – which flies services out of Cardiff Airport and has stores across South Wales – posted losses of €845.8m (£747m) in the first half of 2020, compared to €289.1m (£255m) in the same period 12 months previously.

The Anglo-German company said: “We are targeting to permanently reduce our overhead cost base by 30% across the entire group.

“This will have an impact on potentially 8,000 roles globally that will either not be recruited or reduced.”

Fritz Joussen, chief executive of the firm, said the company should “emerge from the crisis stronger”.

He added: “It will be a different Tui and it will find a different market environment than before the pandemic.

“This will require cuts: in investments, in costs, in our size and our presence around the world. We must be leaner than before, more efficient, faster and more digital.”

The company’s report said: “The tourism industry has weathered a number of macroeconomic shocks throughout the most recent decades, however the Covid-19 pandemic is unquestionably the greatest crisis the industry and Tui has ever faced.”

It added that losses also came as a result of the grounding of the Boeing 737 Max aircraft after two crashes with other airlines.

Manuel Cortes, general secretary of union TSSA, said: “We are extremely disappointed that Tui is planning to cut 8,000 jobs around the globe and would urge them to think again.

“In Britain, the Government’s job protection scheme means that no jobs should be lost here. There is also a similar scheme in the Republic of Ireland. Therefore, there is simply no excuse for job cuts in Britain and Ireland.”

In a media conference call, Mr Joussen said the firm believes it can resume holidays in July at the latest.

Destinations such as the Spanish islands, Greece and Cyprus “are ready”, he insisted.

He said Tui has seen strong demand from UK holidaymakers bookings trips for this winter to destinations such as the Canary Islands and Egypt.

“The Canaries are very safe,” he added.

Mr Joussen said around half of customers are demanding cash refunds for cancelled trips, while half are accepting vouchers.