Thomas Cook losses double

Thomas Cook UK and Ireland was optimistic despite the group reporting a doubling of full year losses. The travel group posted a full-year loss of €251 million for the year ending 31 October, down from a loss of €120 million the previous year. Despite the loss, a statement by the company said that 2002/2003 was one of the best achievements in the company’s 163-year history. Thomas Cook UK chief executive, Manny Fontenla-Novoa said that in the past the financial performance of the travel business had let the company down, but he was optimistic about the future. He said: “…I have every confidence that by the end of the coming financial year we will have really closed the gap with the other vertically integrated travel players in the UK market.” Following the announcement, Thomas Cook AG chairman, Wolfgang Beeser said it will not be looking to sell the UK and Ireland business. However, the company plans further cost cutting in order to compete with TUI and First Choice. According to FT.com, the results have led to a downgrading by Standard & Poor of the corporate rating of Lufthansa, which owns a 50% stake in the operator. Thomas Cook had 12.5 million customers in the year ending 31 October 2003, down 6.4% year-on-year. The average trip duration fell to 9.7 days and Thomas Cook UK & Ireland says that two million holidaymakers went on one of its shorthaul holidays for the first time. Thomas Cook said that expectations by the trade as a whole for the start of 2004 have proved too optimistic, as it appears that the traditional peak booking period of January and February has slipped back. Despite this Thomas Cook bookings are up on last year by 3.7%. Report by Ginny McGrath