Travel firm profits set to soar to £269.5m

Dec 12 2007 by Peter McCusker, The Journal

TRAVEL firm Thomas Cook said profits were set to soar ahead of forecasts as it showed further signs of improvement in its UK business.

Shares in the German-owned firm soared 6% after it said profits for the year to October 31 would hit £269.5m – 26% above last year and well ahead of market expectations.

Thomas Cook, which merged with rival MyTravel in June, said UK winter bookings had improved since its November update and added that early indications for the summer season were good.

The company said the results gave it a “sound platform” to achieve its target of £444.6m in operating profits by 2009/2010.

The update also lifted shares in Thomson Holiday firm Tui, which itself merged with UK operator First Choice earlier this year.

Thomas Cook said bookings and average selling prices for the UK summer season were ahead of last year, even though its capacity is expected to be lower than last summer.