Thomas Cook boss says recovery ‘just begun’

TRAVEL operator Thomas Cook has raised its cost-cutting target after unveiling a 49 per cent surge in annual operating profits.

In March, Thomas Cook said it would axe about 2,500 jobs and close 195 high street stores. Picture: AFP/Getty

Chief executive Harriet Green said the firm’s turnaround has been “a great success” but she insisted its path to sustainable growth “has only just begun”.

She added: “Totally committed to our continuing transformation, I look forward to Thomas Cook delivering even more value in the years to come.”

In March, Thomas Cook said it would axe about 2,500 jobs and close 195 high street stores as part of its turnaround strategy, and yesterday raised its cost-cutting target to £440m, having identified a further £40m in savings.

The group, which came close to collapse in 2011, reported a pre-tax profit before one-off items of £263 million for the year to 30 September, up from £177m a year earlier and ahead of City forecasts.

Mike van Dulken, head of research at Accendo Markets, said the figures were “music to investors’ ears”.