Tour operator Thomas Cook gave a lift to its beleaguered share price today by announcing a one-year extension to its banking facilities.

The new arrangement, which comprises a £200m loan and £850m credit facility through to May 2014, comes a week after Thomas Cook shocked markets with its third profits warning in a year.

Shares opened more than 4% higher today as investors also digested speculation that the company may sell £200m of assets in order to reduce debt.

The group is reportedly seeking buyers for several hotels and a European office, as well as its stake in the air traffic control service NATS.

In addition to the extended lending arrangement, Thomas Cook said the 2.75% interest margin on the facilities had been reduced with immediate effect. It is now 2.25% on the loan while the credit facility has been reduced to between 2% and 2.5% depending on the amount used.

Chief financial officer Paul Hollingworth said: "We are pleased that we have extended the terms of our committed bank facilities by one year as well as reducing the interest margin paid."

Thomas Cook said last week that rising fuel costs, the consumer downturn and the turmoil in north Africa meant full-year operating profits would be some £60m less than expected at around £320m.