Hol­i­day firm sees rev­enues slide

The Peterborough Evening Telegraph - - Business Telegraph -

Rev­enue at Peter­bor­ough-based hol­i­day giant Thomas Cook has fallen fol­low­ing ter­ror at­tacks at some of its key des­ti­na­tions. The tour op­er­a­tor has blamed out­rages in Turkey and Brus­sels for an eight per cent fall in rev­enue to £1,850 mil­lion for the three months to the end of June. Un­der­ly­ing profit came in at £2 mil­lion - down from £30 mil­lion for the same pe­riod last year. The com­pany has also lowered its ex­pec­ta­tions for its full year un­der­ly­ing op­er­at­ing profit to £300 mil­lion - down from be­tween £310 mil­lion to £335 mil­lion fore­cast in May. The 175-year-old com­pany says it has moved to off­set the de­cline by in­creas­ing hol­i­day pack­ages on of­fer in Spain, the Western Mediter­ranean and long haul des­ti­na­tions such as the USA. Peter Fankhauser, chief ex­ec­u­tive, said: “Our fi­nan­cial re­sult in the third quar­ter was in line with our ex­pec­ta­tions when we last re­ported in May, fol­low­ing the im­pact of the at­tack on Brus­sels air­port in March and con­tin­ued weak cus­tomer de­mand for Turkey, which has af­fected Airlines Ger­many in par­tic­u­lar. “We’ve taken ac­tion to fur­ther re­duce our ca­pac­ity to Turkey and in­creased sales of hol­i­days to other ar­eas, in­clud­ing the Western Mediter­ranean and long-haul des­ti­na­tions such as the USA. “Growth to smaller des­ti­na­tions such as Bul­garia and Cuba is also strong.”

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