Thomas Cook has confirmed “multiple” bids have been made for all or part of its airline as it tumbled to a £1.5bn pre-tax loss
The airline says Brexit uncertainty has seen Britons delay their holiday plans for the summer.
It warned challenging trading will put pressure on earnings progress over the full-year.
The loss accounts for the past six months to 31 March.
Peter Fankhauser, chief executive of Thomas Cook also blames last year’s heatwave for its profit drop.
“The first six months of this year have been characterised by an uncertain consumer environment across all our markets.
“The prolonged heatwave last summer and high prices in the Canaries reduced customer demand for winter sun, particularly in the Nordic region.
“While there is now little doubt that the Brexit process has led many UK customers to delay their holiday plans for this summer.
“This, combined with higher fuel and hotel costs, is creating further headwinds to our progress over the remainder of the year.”
Thomas Cook said it now expects underlying earnings to fall over the second half. This will put the full-year result under pressure.
It’s planning further cost savings in the second half to offset tougher trading and higher fuel expenses.
This is following its decision in March to shut 21 stores and axe more than 300 retail roles.
Thomas Cook shares slumped more than 17% after its results.
City News this week explored how Brexit was affecting Briton’s holiday plans.
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HeadlineBrexit delaying British people’s holidays
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StandfirstThomas Cook suffers losses and blames Brexit, heatwaves and fuel issues
Thomas Cook has confirmed “multiple” bids have been made for all or part of its airline as it tumbled to a £1.5bn pre-tax loss
The airline says Brexit uncertainty has seen Britons delay their holiday plans for the summer.
It warned challenging trading will put pressure on earnings progress over the full-year.
The loss accounts for the past six months to 31 March.
Peter Fankhauser, chief executive of Thomas Cook also blames last year’s heatwave for its profit drop.
“The first six months of this year have been characterised by an uncertain consumer environment across all our markets.
“The prolonged heatwave last summer and high prices in the Canaries reduced customer demand for winter sun, particularly in the Nordic region.
“While there is now little doubt that the Brexit process has led many UK customers to delay their holiday plans for this summer.
“This, combined with higher fuel and hotel costs, is creating further headwinds to our progress over the remainder of the year.”
Thomas Cook said it now expects underlying earnings to fall over the second half. This will put the full-year result under pressure.
It’s planning further cost savings in the second half to offset tougher trading and higher fuel expenses.
This is following its decision in March to shut 21 stores and axe more than 300 retail roles.
Thomas Cook shares slumped more than 17% after its results.
City News this week explored how Brexit was affecting Briton’s holiday plans.
