TUI will reduce overheads by 30% as it continues to mitigate the impact of COVID-19.
The company says the move will impact up to 8,000 jobs by reducing the number of roles or not hiring for other positions.
In its half year 2020 financial report for the six months ending March 31, the company says it has reduced its cash outlay by more than 70% to between €250 million and €300 million a month.
The Germany-based tour operator also recently secured a €1.8 billion loan from state-owned development bank KfW and says its current cash position is €2.1 billion.
The group reported EBIT of €343 million for the five months to February, up €62 million on the same period last year.
Half-year group EBIT was €813 million - down €512 million on the same period in 2019.
The company say that total costs in March related to both COVID-19 and the grounding of the Boeing 737 Max aircraft amounted to €470 million.
During a call with financial analysts, group chairman and CEO Friedrich Joussen says the company is upbeat about the potential for recovery in the business in summer 2020, adding that it is in talks with destinations including Greece and Spain’s Balearic Islands.
The summer program for the tour operator is 35% sold compared to 59% this time last year.
TUI says it plans to be “leaner, faster and more efficient” post-COVID-19.
The company is no longer investing in legacy technology and is accelerating its transformation to a “digital platform business.”
It also plans to “right-size” the airline and get rid of any non-profitable elements, with businesses in France and Spain under consideration.
TUI is also speeding up the development of its experiences platform, it says.