Faced with financial difficulties, FTI, Europe's third largest travel group, reported an operating loss of EUR 91.5 million, despite an annual turnover of EUR 3.7 billion, and its equity ratio fell to 2.4 percent.
Although FTI's continuity is described as secured, it is under a high debt burden and at risk of bankruptcy. According to the Association of German Travel Agents (DRV), FTI is protected against bankruptcy by the German Travel Guarantee Fund. However, the risk of not being able to pay the high debts and the company's inability to pay the maximum nine per cent security deposit required to be deposited into the fund show the seriousness of the situation.
The German Consumer Advice Centre North Rhine-Westphalia has stated that payments for purchased package holidays will usually be refunded in the event of the tour operator's bankruptcy, while the German Federal Association of Independent Travel Agents (VUSR) has requested more transparency about FTI's financial situation and booking development.
However, Angela Winter, spokesperson for FTI, Europe's third largest travel group, said in a statement that the sales growth achieved in the past fiscal year and the double-digit increase in summer bookings are promising for the future of the company.
FTI, which employs more than 11,000 people in total in tour operators, incoming travel agencies and its own hotels operating to 120 destinations worldwide, also had problems in repaying the 595 million Euros loan provided by the government in Germany during the pandemic period, and held talks with groups that could buy the company in order to repay these debts, and in that context, it also met with the DER group.
