TUI plans budget cuts, hiring freeze due to coronavirus outbreak

(Reuters) - European holiday company TUI said on Monday it plans to cut administrative budget, freeze hiring and postpone non-critical projects, following weaker bookings last week due to the coronavirus outbreak.

“At this point in time, we only see a marginal effect on our operations,” the company said, and added that it was not yet possible to estimate the potential financial impact.

TUI, which has had weaker bookings since the first coronavirus cases in northern Italy were announced last month, said it was reviewing options for capacity management.

European travel and leisure companies have been hit by the virus outbreak and airlines have seen a significant drop in bookings. British Airways, easyJet Plc and Wizz Air Holdings have announced flight cancellations in the wake of disruption from the epidemic.

Reporting by Rishika Chatterjee in Bengaluru; Editing by Shounak Dasgupta