The state-supported travel company Tui in the pandemic wants to increase its financial leeway.

The company announced on Wednesday that it plans to issue new shares for 1.1 billion euros.

The Russian investor Alexej Mordaschow, who currently holds 32 percent of the shares, wants to participate in the move and keep his stake constant.

At the same time, the Hanover-based company reported an improved booking situation: The confidence of holidaymakers in European travel destinations is returning.

"With the capital increase, we are taking a big step closer to our goal of rapidly reducing government loans," said CEO Fritz Joussen.

Tui wants to use the money to repay the loan of 375 million euros granted by the state-owned KfW bank.

In addition, bank debts are to be reduced.

A silent participation and convertible bond from the federal government totaling around 1.2 billion euros are not affected by the move.

In addition, the credit line granted by KfW remains in place for a little more than three billion euros in order to be able to react flexibly to the further development of the pandemic.

Tui had already increased the capital by 500 million euros in January.

At the beginning of October, the group said it had financial resources of 3.4 billion euros, including the proceeds from the capital increase, this is now 4.5 billion euros.

Strong increase in bookings

The company said that 5.2 million trips had been booked for this summer.

"In the last few weeks in particular, a strong upward trend has been identified." The demand for destinations in Germany and the Netherlands is higher than in the summer of 2019 before the pandemic.

For the coming winter, Tui is planning 60 to 80 percent of the normal program, according to its own information.

Popular winter travel destinations are the Canary Islands, mainland Spain, Egypt and Cape Verde.

For short and medium-haul destinations in winter, the travel restrictions have largely been lifted.

The vaccination rate in the EU and Great Britain is high.

“Therefore, a further increase in international travel is to be expected this winter.” A slower recovery is assumed for long-haul destinations.

Tui also called the number of 1.6 million bookings so far for the summer of 2022 “very encouraging”. “The demand is there.

Wherever government travel restrictions have been lifted, we immediately see the rapid return of business, catch-up effects and higher sales by customers for their trips. ”The bookings for next summer are therefore 54 percent and the average price 15 percent higher than bookings for the summer 2019 at the same time.

The stock exchange took the news more or less indifferently: At lunchtime, the Telekom shares were 0.8 percent in the red.