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"Challenged" Thomas Cook sees losses mount 2 August 2012

Troubled tour operator Thomas Cook confirmed Q2 losses widened over the past year as the underlying profits witnessed in 2011 became a loss in 2012.

In total, the group made a £26.5 million underlying loss for the quarter, compared to a £20.1 million profit for the same period last year from operations before disclosed items.

Accounts also show that for the 9 months to the end of June, it made a loss of £289.2 million, compared to a loss of £145.7 million for the same period last year.

The news comes as the embattled travel group confirmed ‘challenging’ trading in its East and West Europe divisions, conceding that the Russian business will be losing making for the year despite restructuring measures being implemented.

Further disappointments have come from the sale of Olympic and Paralympic packages to corporate customers, which it also described as ‘challenging’.

In a theme running throughout the results, the company said the outlook for the year remains ‘challenging’.
Aiming to ‘challenge’ the ‘challenging’ conditions is the recently appointed Harriet Green who was confirmed at the end of May after Manny Fontenia Novoa left the business nine months before.

Green has something of a hard-faced reputation for corporate turnarounds and has been widely tipped to resolve the company’s difficulties, despite having no significant experience in the travel industry herself.

 

 

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