Thomas Cook confirms cost of Tunisia massacre and Greek crisis
The beach shooting in Tunisia and the Greek financial crisis are expected to hit Thomas Cook’s annual profits by £25 million.
The travel giant said although the impact of Tunisia and Greece was expected to continue into the fourth quarter, and despite a further foreign exchange hit, it was still confident of achieving growth in the full financial year.
It released the forecast as it reported that overall loss before tax was cut from £81 million to £44 million in the three months to June 30.
Chief executive Peter Fankhauser said: "Since the end of the third quarter, our business has been impacted by significant external shocks.
"In response to the tragic events in Tunisia, we acted swiftly and decisively, evacuating more than 15,000 guests on approximately 60 flights and sending Special Assistance Teams to offer logistical and compassionate support to customers and staff.
"In Greece, our local teams have worked diligently to ensure that economic issues do not disrupt our customers’ holidays. Our people have shown exemplary commitment during these crises, distinguishing Thomas Cook by personally contacting tens of thousands of customers, and amending and rebooking their holidays in just a few days.
"While the impact of Tunisia and Greece will reduce our fourth quarter and full year profits, and in spite of foreign exchange headwinds, I have every confidence that our progress will continue, supported by the ongoing execution of our profitable growth strategy."
Looking forward, Thomas Cook said summer 2015 is 78% sold, the same as this time last year.
"Customer bookings have generally improved in most source markets over the last few weeks," it said.
"Our UK business continues to trade well, with the peak departure months well sold at good margins."
It said a focus on differentiated holidays is leading to increased customer demand for holidays to its own brand hotels, where bookings have increased by 38% so far this year.
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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