Escapism boosts Thomas Cook

Published on Monday 30 November 2009 21:15

RECESSION-WEARY Britons who refused to give up their holidays abroad helped Thomas Cook to report better-than-expected annual profits, it emerged yesterday.

Europe's second-biggest tour operator secured a 46 per cent rise in net annual profits to 15.8 million as households continued to make room in limited budgets for foreign travel. Revenue rose 6 per cent to 9.27 billion, prompting a 10 per cent rise in the full-year dividend to 10.75p.

Thomas Cook said recent trading has also been encouraging despite the threat of a swine flu pandemic. It has experienced a recent upturn in winter bookings, while reservations for next summer are also "on track".

Manny Fontenla-Novoa, chief executive of Thomas Cook, said: "While the late booking trend is still evident, our winter 09/10 trading position continues to improve. It is still early in the summer booking cycle, however we are confident we can manage trading in line with demand."

However, analysts at Killik & Co warned that 2010 is likely to remain a difficult year for travel firms due to concerns over tax rises and unemployment.