Thomas Cook sees strong demand for summer holidays
THOMAS COOK has said demand for summer holidays abroad shows no sign of abating, but warned of a competitive and “unpredictable” market.
CEO Peter Fankhauser cheered a “good start” to the financial year as group revenues rose 7 per cent to £1.7bn in the first quarter to December 31.
The tour operator’s seasonal loss narrowed by £10m to £42m in the quarter after its airline was boosted by the collapse of rivals such as Monarch in the UK and Air Berlin in Germany.
Total UK bookings are flat for the winter season and 3 per cent higher for the summer season so far, despite hotel price hikes for two of its biggest markets – the Canaries and Spain.
Mr Fankhauser said Thomas Cook had “got off to a good start” overall and added that it remained on track for full-year forecasts despite a “highly competitive – and, at times, unpredictable – market”.
The group said it continued to see pressure on profits amid a price war in Spain. It has sought to shift demand back to more profitable destinations Egypt and Turkey following woes in recent years due to terrorist attacks and political unrest.
Its airline arm saw a “particularly strong performance” in the first quarter, with an 8 per cent rise in passengers to 3.5 million in the period, while it has seen a “double-digit rise” in summer 2018 bookings.
The figures come after Thomas Cook announced in December that it is to close 50 UK high street shops by March, putting 400 jobs at risk.