Home Breaking Thomas Cook reports £1.46bn loss due to Brexit woes

Thomas Cook reports £1.46bn loss due to Brexit woes

by LLB Reporter
16th May 19 8:18 am

Travel operator Thomas Cook has reported a £1.46bn half-year loss due consumers delaying their holiday plans over Brexit.

Most of the losses for the six months to the end of March were caused by the firm deciding to write down the value of its UK package holiday unit MyTravel, by £1.1bn in light of the weak trading environment. The companies merged in 2007.

Peter Fankhauser, chief executive said fierce competition and political uncertainty will affect their profits this summer.

Thomas Cook’s underlying loss for the half-year was £245m compared with a £170m loss a year ago.The travel firm agreed a £300m bank facility to provide liquidity for the 2019 winter season. The travel operator has also received multiple offers to buy their airline.

Fankhauser said, “There is now little doubt that the Brexit process has led many UK customers to delay their holiday plans for the summer.”

Fankhauser added that looking to the rest of the year “the continued competitive pressure resulting from consumer uncertainty is putting further pressure on margins”.

“This, combined with higher fuel and hotel costs, is creating further headwinds to our progress over the remainder of the year.”

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