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Gloucestershire Business News

Heatwave hits travel company profits

Annual profits at Thomas Cook are set to be about £30m lower than expected, in the company's second profit warning in two months. 

Earnings at its tour operator unit were down £88m in the year to September, because people delayed booking holidays abroad due to the prolonged heatwave at home, as reported but the BBC.

Shares in the company fell by 28 per cent.

The heatwave and mild winter weather are also having an impact winter on holidays, with bookings for the 2018-19 season in Europe down by 2 per cent.

Fewer holidaymakers have booked holidays for the Canary Islands, opting for cheaper trips to Tunisia, Egypt and Turkey instead.

The company's underlying earnings to 30th September are £250m, £58m lower than in 2017. The company blamed some of this decline on additional charges, including disruption to flights.

But it's not all bad news for Thomas Cook, as its airline business recorded profit growth of £35m and its future bookings are 11 per cent ahead of last year, while sales of holidays to its own-brand hotels were up by 15 per cent.

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