MENA turmoil hits Thomas Cook

9th May 2011 08:05

Travel company Thomas Cook said it remains well positioned to make progress this year despite losses arising from unrest in the Middle East and North Africa. Political upheaval in the MENA and the shift of Easter into the second half resulted in an increased seasonal operating loss of £166m, up £36m. "We estimate that the MENA situation has cost the group £22m in the first half, whilst the shift of Easter had an impact of around £15m," Thomas Cook said.Chief executive Manny Fontenla-Novoa commented, "We have responded to the challenges of political unrest in MENA and the weak UK consumer environment by redirecting our flying programme, cutting costs and continue to focus on our strategic priorities." He added, "Whilst results in our UK business are likely to be below last year's levels and the MENA situation remains uncertain, our Continental and Northern European businesses are performing well and summer booking levels are encouraging." For the six months ended 31 March 2011 pre-tax loss widened to £269.4m from £252.2m the same time a year earlier. Revenue increased 4% to £3.43bn, helped by higher prices. Net debt widened to £1.09bn from £951m last year. The interim dividend has been maintained at 3.75p per share.CJ