Ebel: We had a good first half-year and also expect a good summer. Around 50% has already been booked for the summer season. Overall, I am very confident that we will achieve the targeted increase in adjusted operating profit of at least 25%. In the medium and long term, it is about continuing to implement our strategy consistently. We want to sell more products to existing customers, acquire new customers, and position ourselves more strongly globally. Meaning Tui will not only open up new holiday destinations, but also new sales markets.

Ebel: We have one of the strongest tourism brands in the market. The Tui Smile is iconic, and very present internationally. In addition, we are increasingly packaging our offerings dynamically. This makes us much more flexible and agile than before. That's why we are currently experiencing strong growth. The blend of familiar Tui offerings alongside daily-acquired hotel rooms or flight seats is very appealing. This year, we are significantly expanding available capacity in Europe, among other things through a partnership with Ryanair. We see further attractive opportunities for additional partnerships. This enables Tui to offer trips that we did not have in our portfolio before, including an enhanced emphasis on short trips, city trips, and individual segments. This allows us to catch up with the respective market leaders. We are the number one or number two in brand strength in every country in Europe. Based on our strong brand, we want to grow faster than the market.

Kiep: The operational success in the first full fiscal year without the influence of Covid, and the record result in the first quarter of our new financial year, have also contributed to a normalisation of the shareholder base. Just under a year ago, we had many short-term-oriented shareholders. Now, other investors who intend to remain committed for the long term are emerging. The prospect of inclusion in the MDax naturally also plays a role, with the return of a primary listing on the Frankfurt Stock Exchange.

Kiep: Indeed, we should aim to pay a dividend to our shareholders in the future, and that is also our intention. We have a clear plan for this. Initially, we still have some tasks to complete. We have repaid the state aid, and also want to return the last remaining tranche from the KfW credit line of originally 2 billion euros, which we have not used this year. We have already significantly reduced this credit line, and next, we need to return the remaining 550 million euros available.

Kiep: The fees for availability are low. Therefore, we have no reason to rush. I assume that we will replace the credit line with a lead time of 12 months until maturity. And we are taking our time to look at various instruments. As a tourism company, we typically do most of our business in the summer half-year, between April and September. Therefore, it was important for us to retain this safeguard over the winter.

Ebel: We will carefully consider which instruments we can use sensibly. Our focus is on our own free cash flow. A positive cash flow is always very important to optimise financing costs.

Kiep: In addition – and this brings me back to your question about the dividend perspective – we also want to further reduce our relative indebtedness, to achieve a better rating for the company again. Currently, we are rated at the „B+“ level, with a positive outlook. Before the pandemic, we were rated in the „BB“ range. Thus, there is still some way to go. Once we have achieved that, it is the right time to define a distribution policy.

Ebel: Our goal is to grow profitably. Stock buybacks are considered when there is a lack of ideas on where else investments would be worthwhile. We currently do not lack good ideas on how we can grow, through digitalization and further globalisation. Operational success is what creates value. Tui is not perceived as a growth stock today, but the travel industry is a growth industry, and if we show decent growth in the second or third year, we will also be valued differently. We have ambitious goals and want to deliver what we promise.

Ebel: It is about continuing to gain trust. By firstly doing our homework, reducing debt, and consistently leveraging our growth opportunities so that the Tui share is perceived as a growth stock. The final step is to attract some long-term oriented investors who seeks a solid dividend.

Ebel: Inflationary pressure has recently eased, and this has also dampened the development of travel prices. I don't think we will see significant price increases anymore. And we have a wide range of offerings, from which we can provide destinations for every travel budget. People are traveling. This is very clear from the first half of the year, and also visible when looking at the summer. But vacation destinations are also in competition.

Kiep: For us, it was very important to return to a normalised hedging strategy. This means that we are fully hedged before the start of the season, and can calculate with stable prices when selling our products. Last year, we were exposed to significant negative effects, because we were not well hedged at the beginning of the season.

Kiep: It is true that we have normalised our own investments. Before the pandemic, we had generated 2 billion euros through divestments, and reinvested them. This process is now complete. The approximately 500 million euros we are spending annually are practically the benchmark for the future. This may fluctuate slightly when we add new aircraft to the fleet. However, we do not include investments in joint ventures on our balance sheet. So, the new hotel joint venture with Riu is financed from a special dividend from the JV.

Ebel: We will always review on a case-by-case basis whether we will put an aircraft on our balance sheet, or a new hotel. There will always be adjustments, but fundamentally, the structure fits.

Ebel: We have positioned our airline with flight operations in five countries in Europe very well. Having an airline is a good thing for us as long as we can operate it economically. We have to compete, of course. Having our own airline also has advantages. We can invest in destinations and develop them without worrying about whether there are foreign flight capacities there. In such cases, we operate our own flights. The Cape Verde Islands serve as a prime example of this strategy. And having our own airline offers high quality and reliability.