By Zuzanna Szymanska

FRANKFURT (Reuters), – TUI, a holiday group, said Wednesday it expected to be profitable in 2022. Strong bookings resulting from travel restrictions being lifted by countries due to pandemics will help to boost its core earnings.

CEO Fritz Joussen spoke on conference call that it also expects that recovery in the COVID affected holiday sector will be sustained as oil prices finally normalize.

We are talking about oil prices of $105 to 110 per barrel. Joussen stated that such prices have never been seen in the past.

He said, “I believe there might even be upside potent if oil prices normalize since they are the driver for inflation today,” when asked whether consumer fears about rising living expenses might end the skyrocketing demand.

He stated that the price rises resulting from increased demand, which has made offers more scarce and people booking longer vacations, should be sufficient to cover fuel costs.

Joussen stated that there will not be any last-minute deals at very low prices this summer.

He said that TUI’s capacity will almost be at the level it was before the crisis in 2019.

TUI-listed German shares were up 2.7% by 0800 GMT

TUI’s second quarter underlying loss (before interest and taxes) was 330 million Euros ($347.95 Million), nearly halving its 633 million-euro loss for last year.

TUI said that sales reached 2.13 Billion Euros in the first quarter of the 2022 financial year. That figure is nine times higher than the 2021 second quarter. People jumped on the opportunity to travel again once they were able.

The company last reported a profit in 2019.

($1 = 0.9484 euros)