Thomas Cook says Tunisia attack, Greece concern to hit year profit

Thomas Cook has warned that the cancellation of holidays to Tunisia after a beach resort gun attack and concerns regarding Greece’s potential exit from the Euro are expected to hit its annual profits.

Thomas Cook said that this was the twelfth consecutive quarter of improved profitability for the company, even though revenue was hit by a later booking profile and softer market demand, as costs associated with restructuring, legal disputes and finance-related charges reduced by GBP46 million to GBP37 million from GBP83 million.

Both of those events are understandably putting people off holidaying in the 2 countries, which are usually top tourist destinations for Thomas Cook. While conceding that the crisis could also hit its numbers for 2016, chief executive Peter Fankhauser said he was confident that travellers will eventually return to the country.

“In response to the tragic events in Tunisia, we acted swiftly and decisively, evacuating more than 15,000 guests on approximately 60 flights and sending Special Assistance Teams to offer logistical and compassionate support to customers and staff”.

To make matters worse, the impact of foreign exchange is also now set to be worse.

But Thomas Cook said it continues to expect growth in its 2015 financial year on a constant currency basis.

The firm noted the foreign exchange translation impact on 2015 profit was expected to be 39 million pounds, up from 25 million previously indicated, following further depreciation of the euro and Swedish krona against sterling.

Shares in Thomas Cook were trading down 0.9% at 125.30 pence Thursday morning.