TUI has announced a recruitment freeze and is considering capacity cuts after a dip in bookings in the last week.
It said since the first COVID-19 cases in Northern Italy and Tenerife it has seen weaker bookings in the last week, especially for its ‘remaining, near-term and lower volume winter season’.
As a result, it is cutting its budget in administrative areas, implementing a recruitment freeze and postponing non-critical projects.
It is also ‘carefully reviewing options for capacity management, if needed’.
But the travel giant reassured investors that it was experienced with handling external challenges.
"Given that the situation is still evolving, it is not yet possible to estimate the potential financial impact across our business of the current COVID-19 development. We are continuously monitoring the situation very closely and actively evaluating the implications for our business," it said.
TUI has set up task forces across all markets and is close contact with the relevant authorities and ministries over the coronavirus spread.
