TUI delivered a weak Q1 as expected, with an unexpectedly improved cash burn rate, but the latter should be considered as a one-off item since no improvement has been included in the guidance. The group’s current liquidity position should be adequate at least until the summer, while its heavy leverage is a concern instead. It continues betting on a summer recovery, whereas we still consider the near-term market conditions as highly uncertain.
09 Feb 2021
Not convinced by TUI’s sparkling summer hopes
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Not convinced by TUI’s sparkling summer hopes
TUI AG (TUI:LON) | 564 -56.4 (-1.7%) | Mkt Cap: 2,861m
- Published:
09 Feb 2021 -
Author:
Yi Zhong -
Pages:
3
TUI delivered a weak Q1 as expected, with an unexpectedly improved cash burn rate, but the latter should be considered as a one-off item since no improvement has been included in the guidance. The group’s current liquidity position should be adequate at least until the summer, while its heavy leverage is a concern instead. It continues betting on a summer recovery, whereas we still consider the near-term market conditions as highly uncertain.