Wednesday, 30 January 2008

Thomas Cook on track for record profits

It seems like consumers are showing no sign of cutting back on major trips around the globe as holidays giant Thomas Cook today said it was in good shape for the year ahead. The company, which merged with Airtours rival MyTravel last year, said demand for both winter and summer holidays exceeded supply.

The company said that it benefited from reduced capacity on loss-making routes, particularly to long-haul destinations. "By managing the number of holidays to be sold, we believe we are in a position to benefit from higher average selling prices and are less exposed to any future change in demand." a spokesperson at Thomas Cook said.

The update on trading conditions came as Thomas Cook posted annual profits from existing operations of 375.3 million euros (£279.1 million), an increase of 26% on a year earlier.

The project by merging with MyTravel involved the closure of 144 shops in the UK, leaving an estate of 812. The company's UK headquarters have also been established in Peterborough after a number of offices were closed in a rationalisation programme.

Thomas Cook Airways is now the company's only UK airline, operating with a single flight programme with effect from this spring. The company said it was on track to achieve savings of at least 200 million euros (£148.8 million) from the merger, which is an increase of 60 million euros (£44.6 million) on its original forecast and up to a year ahead of schedule. (source: The Independent)

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