Thomas Cook on track with Turkey, Greece, Egypt holidays popular
LONDON - Reuters
British holiday company Thomas Cook said it was on track to meet annual forecasts helped by strong demand for holidays to Turkey, Greece and Egypt, and as part of its plan to shift capacity away from parts of Spain where margins are lower.
Analysts are on average expecting Thomas Cook to post operating profit of 352 million pounds for the 12 month period to Sept. 31, which would represent a 7 percent rise on last year’s result.
Thomas Cook said that in Britain, the smaller part of its business in revenue terms compared to its bigger divisions in the Nordics and Germany, France and Belgium, margins were under pressure due to adverse currency moves and hotel cost inflation.
It was mitigating this pressure by shifting holidays from Spain to destinations like Greece and Turkey in the Eastern Mediterranean.
For its first-half, which includes its weaker winter season when fewer Europeans take holidays, Thomas Cook on May 17 posted an underlying loss from operations of 169 million pounds, a 5 percent improvement on last year.
That was buoyed by strong demand for holidays to Egypt and long-haul destinations, improving its first-half performance.
Thomas Cook also said on May 17 that it would scrap its Club 18-30 holiday brand.