Bookings take off at Thomas Cook

Miserable weather in the UK has led to a surge in bookings for foreign holidays, boosting bookings at tour operator Thomas Cook.

The UK’s second biggest travel company said its summer programme was now 88 per cent sold after a weather-related boost in recent weeks following a subdued April and May.

But cumulative bookings in the UK were still down 1 per cent on last year as at 29 July, although this was unchanged from its last update in May, the 170-year-old firm said.

The group, which was recently forced to turn to its banks for an additional £200 million of loans, reported an underlying operating loss of £26.5m in the three months to 30 June due to tough trading conditions and the cost of acquisitions.

James Hollins, an analyst at Investec Securities, said: “Thomas Cook’s third-quarter update was relatively bullish on the outlook for summer bookings, the UK turnaround programme and full-year forecasts.

“We think that Thomas Cook, led by the new chief executive and chief financial officer, has myriad opportunities to target significant cost savings and drive operational improvements across the group, most notably in the UK. On this basis, we see deep value in the shares and retain our ‘buy’ recommendation.”