Thomas Cook says winter bookings on the rise

Friday, 25 September 2015 00:00 - - {{hitsCtrl.values.hits}}

London (Reuters): Holiday firm Thomas Cook has said booking volumes and prices for the coming winter were ahead of last year, sending its shares to their highest in nearly two months.

The company is forecasting growth on a constant-currency basis for the 12 months ending 30 September, despite a previously announced 25 million pound ($ 38 million) hit to operating profit from cancelled holidays to Tunisia in the aftermath of the beach massacre there in June.

Demand for holidays in its fourth quarter had been helped by poor weather in Scandinavia, Thomas Cook said on Thursday, adding that since July there had been a significant increase in the number of customers picking Greece and Egypt as destinations.

Shares in the company, which had lost about 17% of their value over the last three months, rose 4% to 120.5 pence in early trading, hitting their highest since 31 July.

“Today’s in-line ... update is welcome given recent share price volatility,” Jefferies analysts said in a note.

TUI Group, Thomas Cook’s larger rival, had said on Wednesday that it had seen robust trading over the summer and bookings for the winter season were developing in line with its expectations.

Thomas Cook is due to report its annual results on 25 November.