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07 February 2019

Thomas Cook launches review of airline business after losses widen

Thomas Cook has today (7th February 2019) announced a strategic review of its airline business amid ongoing consumer uncertainty in the UK.
 
In its trading update for the three months to 31st December 2018, the Cambridgeshire-headquartered travel agent said last year’s UK summer heatwave, a fiercely competitive market and weaker demand for winter holidays in the Nordic countries had impacted margins over the quarter. Chief executive Peter Fankhauser said: “It is clear we need greater financial flexibility and greater resources.”
 
Mark Rigby, Investment Manager and head of the Cambridge office, said: “Thomas Cook enjoyed a strong rebound today off the back of their first-quarter trading statement. Revenue was up 1%, however operating losses increased to £60m from £46m. Summer 2019 bookings are only 30% sold at present, but there was no change to full-year guidance.
 
“More importantly though, the company announced a strategic review of its airline, which has been seen as a positive move by most market commentators today, with some suggesting the airline, if sold, could be worth more than the company’s current market value.
 
“After heavy falls during 2018, today’s news saw a much-needed boost of more than 13% to the share price during this morning’s trading. Today’s news could see the beginning of a recovery for Thomas Cook’s fortunes.”
 
Ends
 
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Thomas Cook launches review of airline business after losses widen
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