FRANKFURT, Germany—Holiday group TUI said on Wednesday it expects to become profitable again in 2022 with significantly positive underlying core earnings thanks to strong bookings as countries lift pandemic-related travel restrictions.
At the same time, it expects the recovery of the COVID-hit holiday sector to be lasting as oil and gas prices should eventually normalize, CEO Fritz Joussen said in a conference call.
“We are talking about oil price levels of $105–$110 per barrel. And historically, I have not seen such pricing levels to last very long,” Joussen said.
“I think there might even be upside potential if oil and gas prices normalize because they are the driver of inflation today,” he added when asked if consumer worries about rising costs of living might put an end to the soaring demand.
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