TUESDAY ASH ALERT- Cost to Thomas Cook is £7m a day
Monday, 20 Apr, 2010
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The cost of the impact of travel disruption as a result of the volcanic ash crisis is costing Thomas Cook £7 million a day.
The figure emerged as the group said it was working with the relevant national bodies and international authorities to understand the likely further impact on flying schedules and mitigate the impact on the travel industry.
"The group’s first priority is to support our customers affected by the airspace restriction and welfare is being provided to those overseas," a statement said.
"For those due to depart alternative holidays are being offered; a large number of our holiday makers are choosing to rebook.
"The precise financial impact is difficult to calculate at this point in time given the number of factors involved.
"The estimated current daily impact on the operating result, including both lost contribution and additional costs, is around £7 million."
Thomas Cook pointed out that it has "substantial banking facilities" and as at March 31 had headroom of around £400 million under a committed banking facility.
CEO Manny Fontenla-Novoa said: "Clearly this is a very difficult time for our customers and our priority is on minimising the impact on them and ensuring their safe return."
*Thomas Cook’s acquisition of Think W3 Limited has completed following approval from the Financial Services Authority. Think W3 is the owner of Essential Travel, a UK online provider of travel-related products including travel insurance, airport parking and airport hotels.
by Phil Davies
Phil Davies
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