Thomas Cook Group decreases first half losses
Thomas Cook Group plc has stated that the combined Group successfully reduced the pro forma seasonal loss before tax in the six months to April 2007 by €25.4m, or eight percent to €293 million. (2006: loss before tax of €318.4m). (6/27/2007)
In the MyTravel business, the operating loss was reduced by 12 percent to €102.3m (2006: loss of €115.8m). In the Thomas Cook AG business, the operating loss was reduced by four percent to €220.8m (2006: loss of €230.2m).
On the outlook, the group stated: “While conditions for the summer remain challenging in a number of markets, the Board believes that in the absence of significant adverse events, such as were experienced last year, trading conditions in the UK for the remainder of the summer season should be significantly improved. On that basis, the Board believes that its financial performance for the full year 2007 will be in line with its expectations.”
It was shared that trading conditions in the UK remain challenging for summer 07. Consequently, actions have been taken throughout the year to reduce capacity year on year by five percent. Against this, cumulative bookings are five percent behind the prior year and we have sold 74 percent of capacity, which is in line with the prior year. Average selling prices are flat year on year.
Further on current trading – Summer 07, a release stated:
· In Northern Europe, cumulative bookings for summer 07 are currently two percent behind the prior year on one percent more capacity. To date, we have sold 70 percent of our capacity, which is two percent behind the prior year, and average selling prices are three percent up.
· In Continental Europe, bookings are currently seven percent behind the prior year with average selling prices two percent ahead. Trading conditions in our largest market, Germany, remain challenging. However, we continue to align capacity to the reduction in bookings.
· In North America, cumulative bookings for summer 07, being the low season, are currently 27 percent behind the prior year. Capacity, however, is also down 29 percent following the removal of one aircraft from the plan. To date, we have sold 58 percent of our capacity, which is two percent up on the prior year, and average selling prices are 10 percent up.
· In Airlines Germany, cumulative bookings for summer 07 are currently nine percent behind the prior year but on 11 percent less capacity. Seat only bookings, representing 31 percent of total Airlines bookings to date, have reduced year on year by seven percent, reflecting significantly reduced City business offset by a strong performance in long haul.