Volcano disruption to cost Thomas Cook £70m

13th May 2010 07:26

Travel group Thomas Cook posted narrower losses in the six months to the end of March after continuing to cut capacity to cope with tough economic conditions and said that the impact of the volcano cloud disruption in April would be about £70m.Pre-tax losses totalled £252.2, less than the £309m shortfall seen in the same period the previous year. Revenues fell to £3.3bn from £3.48bn due to what the company described as 'planned capacity reductions in out winter 09/10 mainstream travel programme.'Thomas Cook said it will take it some time to determine the impact of the disruption caused by the volcanic ash cloud last month, but that its best estimate was that it cost the company about £70m. The impact will appear in its second half results.Chief executive Manny Fontenla-Novoa said that, though it is faced with backdrop of increasing economic uncertainty, Thomas Cook was pleased with progress on summer bookings so far.'The group remains confident of meeting board expectations for the year,' he said.