Tunisia Shootings And Greece Hit Thomas Cook

Our people have shown exemplary commitment during these crises, distinguishing Thomas Cook by personally contacting tens of thousands of customers, and amending and rebooking their holidays in just a few days.

The travel and leisure company said events in Tunisia and Greece are expected to reduce full year group earnings, before interest and tax, by 25 million pounds ($39.05 million).

Chief executive Peter Fankhauser said: “Since the end of the third quarter, our business has been impacted by significant external shocks”.

“Tunisia going forward is going to be a popular holiday destination again”, he told reporters.

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

The firm said its operating profit in the three months to the end of June, its third fiscal quarter, improved to £3 million pounds from a £50million loss in the same period the year before.

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

Thomas Cook has warned that disruption caused by the terrorist attack on tourists in Tunisia and the Greek debt crisis will reduce the company’s profits by about £25m this year.

The summer season for this year was 78 per cent sold for the group as a whole and 84 per cent in the UK – the latter 1 per cent lower than last year, with average selling prices also 1 per cent lower as the group expands its “seats only” business.

“We were reassured to see that the Tunisian government is doing a lot to protect our guests”.

‘Although these events are largely outside the company’s control they will, nevertheless, weigh on the shares in the short term, ‘ they said.