Shareholders at Thomas Cook draw a line in the sand

Feb 10, 2017, 01:40
Shareholders at Thomas Cook draw a line in the sand

"We remain cautious about the rest of the year, given the uncertain political and economic outlook".

Peter Fankhauser, Chief Executive of Thomas Cook, said: "Bookings to Greece are now up by over 40 per cent, while demand for destinations such as Cyprus, Bulgaria, Portugal and Croatia is also strong".

Shares in Thomas Cook fell after the update.

The cost of summer holiday packages have shot up by nine per cent at Thomas Cook, as bosses report a surge in demand for Spanish island breaks.

Greece resumes top destination spot for Thomas Cook Jennifer Morris (@JMorrisTTG) February 9, 2017 Britain's planned exit from the European Union is another uncertainty factor, along with new US President Donald Trump, but the company said it is on track to meet market expectations for its full-year operating profit.

The world's oldest holiday company said almost a third of its summer holidays have been sold, with bookings nine percent ahead of this time previous year.

The group said United Kingdom bookings for this year's key summer season were largely flat - up one per cent overall - as it comes under pressure from rivals in the Spanish island market.

Thomas Cook chief executive Peter Fankhauser faces pressure from shareholders over his pay deal.

Travel giant Thomas Cook is facing investor anger after a major shareholder voted against its plans for executive pay.

However, the group did maintain that increased demand for its Greece holidays mitigated any fall in Turkey's popularity amid terror attacks.

Mr Fankhauser declined to comment on his pay plans, which he said were drawn up by the group's remuneration committee. These positive trends are making up for continued weak demand for Turkey'. It said that revenue was up 1 percent to 1.62 billion pounds.

The City reacted by heavily marking down the company's shares by as much as 9.5 per cent in the morning, before rebounding slightly.

But pre-tax losses - in a traditionally tough part of the year for the travel industry - widened by 14% to £135m after the group took on more borrowing.