Thomas Cook to miss expectations

12th Jul 2011 07:02

Thomas Cook's third quarter results will miss expectations as the turmoil in the Arab world and economic weakness in the UK take its toll on the travel operator.The firm said its French operations have been hit particularly hard by the political unrest in countries such as Egypt, Tunisia and Morocco.Operating profit for the three months to 30 June is likely to come in at about £20m, about £5m lower than the same period the previous year. "This would leave us circa £40m behind our cumulative prior year result as we enter the last quarter of our financial year and below the guidance given at the time of the interim results in May," the company, which posted an operating profit of £362.2m in 2010, said.Meanwhile, ongoing economic weakness in the UK has prompted Thomas Cook to begin a strategic and operational review of the business. The Central Europe, Northern Europe and Airlines Germany businesses continue to perform well, the company said.---RG