THOMAS COOK OPEN TO SALE

TRAVEL group Thomas Cook said yesterday that it was willing to sell its airline business to raise cash and help it recover from a rough 2018 and weaker demand in 2019. It said it was launching a strategic review as it needed more resources and financial flexibility after two profit warnings late last year. “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,” chief executive Peter Fankhauser said. Thomas Cook was hurt by a heatwave that gripped northern Europe last year and deterred holiday makers from booking lucrative last-minute deals. That led the company to cut its profit forecast twice in two months in 2018. Thomas Cook said it had made progress in managing its cost base but that bookings for this northern summer reflected consumer uncertainty, especially in Britain. In the first-quarter trading update, it said it would not change its outlook for the full-year. Its airline business fared much better than the tour operator segment last year, and grew its profit by £35 million (R610.42m). The tour operator business profit fell £88m. | Reuters