INSPIRATION

Travel giant Thomas Cook yesterday revealed a 40 per cent plunge in UK earnings as it suffered amid “challenging” trading and a hit from the weak pound.

The holiday group reported underlying earnings of £52 million for the UK division in the year to 30 September, down from £86m the previous year after it was knocked by rising hotel prices, the pound and intense competition in the Spanish market.

It also said its costs were sent surging after facing a torrent of fraudulent illness claims and after supporting 10,000 customers caught up in the devastating Hurricane Irma.

But the group said it has launched action to return its UK division to profitable growth once more by slashing costs, taking legal action against illness fraudsters and focusing on fast-growing holiday destinations Turkey and Egypt as demand returns to the countries.

The wider group enjoyed a better year, with pre-tax profits rising to £46m from £34m a year earlier thanks to a turn-

0 The travel giant will be hoping for sunnier times ahead after latest results

“By delivering what we promised on strategy, we’ve inspired more customers to choose our holidays for their hard-earned weeks in the sun”

PETER FANKHAUSER, CEO around at its German airline Condor and improved customer demand. Underlying earnings rose £24m to £330m.

Peter Fankhauser, chief executive of Thomas Cook, said: “2017 was a milestone year in the strategic development of Thomas Cook. By delivering what we promised on strategy, we’ve inspired more customers to choose our holidays for their hard-earned weeks in the sun.”

He added: “Looking to the year ahead, we can see real momentum in our Group Airline, and expect our Continental Europe and Northern Europe tour operator businesses to continue their good performance.

“While conditions are challenging in the UK, we have implemented a set of actions to improve performance.”

Thomas Cook has been struggling amid a price war for Spanish holidays, which partly contributed to the collapse of smaller rival Monarch last month.

The woes in Spain, which is Thomas Cook’s biggest destination,