Thomas Cook says turnaround is on target
Thomas Cook has sold around 85% of planned capacity for this summer, according to its trading update released today.
It said "disciplined management" of committed capacity has led to 9% less capacity left to sell in the lates market compared with last year.
"Current bookings match our expectations and, as we continue to focus on managing capacity with demand, we are optimistic that we will maintain satisfactory prices and margins during the remainder of the summer season," said the trading statement.
"We do, however, recognise that the lates market last year was particularly strong due to inclement weather throughout much of Europe, which has not been replicated this year."
Recent political and social unrest in Egypt and Turkey is not currently having a significant impact, it added.
Thomas Cook said its turnaround led to a profit of £1 million in the three months to end of June, up £46 million on the same period last year.
It made an additional £31 million savings in cost out and profit improvement benefits in the third quarter, taking the total to £138 million. Of this, £105 million came from the UK.
"This means that we are well on our way to meeting our target of £170 million for the full year, which we increased to reflect the fact that we were delivering benefits faster than originally planned," said Group chief executive Harriet Green,.
Net debt has been more than halved from £1,099 million last June to £452 million.
The group also announced that Karl Schattmaier has been appointed to the newly-created role of managing director Group Hotel Unit, Thomas Cook Hotels & Resorts.
Before joining Thomas Cook, he oversaw the merger of Iberotel and Rui, led the Steigenberger Hotel corporation and is chairman of the Supervisory Board of the SRS Hotel Group.
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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