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Thomas Cook profit losses flying high at £60m

by LLB Reporter
7th Feb 19 8:48 am

Thomas Cook are exploring options to sell the airline amid concerns over the airline’s future. Shares nosedived at the end of last year following their third profit warning, with terrible full year losses.

The company said Thursday that they will be conducting a strategic review to look at all “options to enhance value to shareholders.” Underlying operating profit losses increased to a record high from £14m to £60m.

Peter Fankhauser, chief executive for Thomas Cook said, “We are today announcing a strategic review of our group airline.

“We are at an early stage in this review process which will consider all options to enhance value to shareholders and intensify our strategic focus. We will provide an update on this process in due course.”

Thursday’s announcement came as the company reported 1% rise in the first quarter with revenue of £1.65bn. This was led by demand for Turkish and North African destinations, offsetting less demand for Spain.

Fankhauser added, “As expected, the knock-on effect from the prolonged summer heatwave and high prices in the Canaries have impacted customer demand for winter sun.

“Where summer 2018 bookings started very strongly, bookings for summer 2019 reflect some consumer uncertainty, particularly in the UK, and our decision to reduce capacity will both mitigate risk in our tour operator business and help our airline to consolidate the strong growth achieved last year.”

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