Thomas Cook lowers earnings forecast as summer bookings dip

Sales dropped by 5% as tourists opt to avoid Turkey

Thomas Cook first half revenue grew to £2.67 billion (€3.5 billion), and underlying operating loss improved by 5 per cent to £163 million (€212 million). Photograph: Reuters
Thomas Cook first half revenue grew to £2.67 billion (€3.5 billion), and underlying operating loss improved by 5 per cent to £163 million (€212 million). Photograph: Reuters

Thomas Cook said its summer bookings were down 5 per cent as tourists shunned Turkey, its second-most popular destination last year, leading to a lower forecast for full-year earnings.

The group said revenue for its first half grew slightly to £2.67 billion (€3.5 billion), and its underlying operating loss improved by 5 per cent to £163 million (€212 million) thanks to the positive impact of selling higher quality holidays on its margins.

Thomas Cook said it expected underlying operating profit for the year to be between £310 million and £335 million, towards the bottom of analysts’ forecasts of £310 million to £359 million.

It said it continued to expect to pay a dividend in respect of the current year’s earnings.

- Reuters