News

Thomas Cook shares hit as UK earnings fall

Thomas Cook shares hit as UK earnings fall
Business
Earnings at its UK division fell by 40% in the year to 30 September to £52m and the company s share price sank by as much as 13% in early trade.

Rising hotel prices, the fall in the pound and competition in the Spanish market all affected the holiday firm.

Its costs rose because of a spate of fraudulent illness claims and helping customers caught up in Hurricane Irma.

Despite the weak performance at its UK division, underlying earnings across the Thomas Cook group as a whole rose by £24m to £330m, helped by a recovery at its German airline Condor.

Chief executive Peter Fankhauser promised to arrest the slide in the UK: "While conditions are challenging in the UK, we have implemented a set of actions to improve performance."

The company said it planned to take legal action against people who make false illness claims.

Thomas Cook is also focusing on destinations such as Turkey and Egypt as they begin to regain popularity. Demand for holidays in both countries had fallen after terror attacks.

The company said trading for the winter season was meeting expectations, with bookings up 5% thanks to steady demand for trips to the Canaries and a "strong recovery" in holidays to Egypt.
Read more on bbc.com
News Topics :
RELATED STORIES :
Business
Thomas Cook said the stores affected are either close to other stores or are located where a fall in customers has hit profitability. Thomas Cook says 47 of its holidays...
Business
Travel company Thomas Cook says it has won a legal victory against a fake holiday sickness claim and plans to challenge other such claims in court. It comes after a...
Business
Travel company Thomas Cook has said it expects the price of Spanish holidays to rise by another 5 to 10 next year because of the weak pound. Chief executive Peter...
Business
British holiday company Thomas Cook Group PLC said chief executive Harriet Green had been replaced by its chief operating officer, the abrupt departure of a woman credited with reviving the...
Business
The increase in industrial production was better than analysts forecasts, and the fastest growth seen since December last year. Manufacturing output a subset of industrial output also...