Thomas Cook profits up 32%

Dec 2 2008

Thomas Cook today reported a 32% hike in annual profits after the travel giant cut costs and capacity to cope with the consumer downturn.

The firm - formed last year from the merger of Thomas Cook and MyTravel - said capacity in the UK travel market had been slashed by a quarter over the past two years.

It said it was benefiting from actions to offset the economic uncertainty, as well as the collapse of rivals, such as XL Leisure earlier this year.

Underlying pre-tax profits rose to £309.3m in the 12 months to September 30, up from £234.4m the previous year.

Prices are also rising - up 8% for next summer and 4% this winter - as it expects to have fewer holidays to sell in the lates market.

The group says this has not put holidaymakers off taking trips abroad, but it said it has seen UK travellers shift their holidays to countries outside of the euro-zone as the pound continues to weaken against the euro.