FY EBIT 409 mln euros vs 2 bln euro loss last year
Sees significant increase in EBIT in 2023
Eyes capital increase of 1.6 bln euros 1.8 bln euros
Shares down 6

LONDON, Dec 14 Reuters TUI, the world39;s largest holiday company, said it planned to repay COVID19 support through a capital raising next year after a strong summer helped it swing back to profit and it forecast a solid 2023.

Germanybased TUI, which operates holidays, hotels, cruise ships and an airline said it would start to cut its dependence on the German state, whose help enabled the group to survive the pandemic.

Chief Financial Officer Mathias Kiep said TUI would need to raise between 1.6 billion and 1.8 billion euros through a capital raise to start repaying its German loans.

That news weighed on its shares. The stock dropped 6 to 138 pence in morning trading, paring gains made over the last month. It has already lost 40 of its value in 2022.

The extent of potential equity dilution will depend on prevailing appetite and share price, said Stifel analysts, noting that sanctioned Russian shareholder Alexei Mordashov cannot participate in any rights issue.

SOLID OUTLOOK

TUI said 2023 would be solid and it guided to a significant increase in earnings. For the year to endSeptember, TUI on Wednesday posted underlying earnings EBIT of 409 million euros 435 million, compared to a 2 billion euro loss the previous year.

Bookings for next year were stable and average prices higher, TUI said, adding that…