Travel giant Thomas Cook today said the swine flu outbreak had cost the business around £12.6 million (€14.6 million) so far.
The firm, which is due to put a proposal to its Dublin staff today in a bid to end a bitter dispute, said the cost of cancelled trips - mainly in the UK and Germany - after official advice not to travel to Mexico was “more significant" than anticipated.
Thomas Cook also has more long-haul trips left to sell than at the same time last year as travellers shun the popular tourist destination of Cancun.
Thomson Holidays rival TUI Travel unveiled a £7 million bill for the May outbreak yesterday.
Despite the disease and later booking trends, Thomas Cook said it was on track to meet management hopes this year with “robust” trading in the summer season.
Chief executive Manny Fontenla-Novoa added: “Looking beyond the current year we are preparing for continued tough market conditions.”
In the UK, average selling prices for summer were 8 per cent ahead of last year although bookings were down 11 per cent in line with the company’s reduced capacity.
The business has over a third less short-haul flights to sell than at the same stage last year, meaning it has to give away fewer holidays cheaply in the discounted ‘lates’ market.
Thomas Cook has also been growing share in higher margin medium-haul business, benefiting from a trend towards all-inclusive packages and non-euro destinations. ‘All-in’ holidays now account for more than 40 per cent of summer capacity, the firm said.
Thomas Cook management and the Transport Salaried Staffs’ Association (TSSA) agreed a proposal late last night with regards to its Irish staff which will be put to the union's members at a meeting this morning.
Thomas Cook claims that the deal, which followed 10 hours of talks at the Labour Relations Commission, is the same as was on offer before the dispute began.
The company has offered five weeks per year of service plus a month’s pay as an ex-gratia payment to 77 workers who will be made redundant as the result of the closure of its two stores in Grafton Street and Talbot Street.
The unions and the workers were holding out for eight weeks per year of service. They claimed that the company could afford it given the £7 million it paid Mr Fontenla-Novoa last year. The company is due to announce its quarterly results later today.
PA