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TUI says cost cutting target in sight as it slashes overheads
[FRANKFURT] TUI said it's making progress on plans to cut overhead costs by 30 per cent as the world's largest tour operator struggles to cope with a collapse in demand for its holidays.
Projects underway across TUI's head office, destination services and markets and airlines operations are already set to deliver close to a 300 million euro (S$480.6 million) savings target, TUI said in a statement on Tuesday.
TUI is cutting as many as 8,000 jobs as the coronavirus continues to roil travel markets. The company said it's trimming the capacity on offer for the fourth quarter to just 25 per cent of year-ago levels and focusing on lower-risk destinations to attract customers.
As at Sept 20, TUI had about two billion euros in cash and available facilities, including two tranches of government aid that gave the company three billion euros in funds.