Holiday company Thomas Cook has issued a profit warning after its share plummeted in the first half of the financial year. The troubled firm reported a £1.5 billion half-year loss as Brexit uncertainty has put Britons off booking holidays.
Thomas Cook Boss Peter Fankhauser said there was “now little doubt” that Brexit had caused UK holidaymakers to postpone their summer travel plans. He also said there had been no pick-up since the EU withdrawal deadline was pushed back to October.
The cash-strapped holiday group has received “multiple” bids for its airline, which was put up for sale in February to help shore up its finances.
What will happen to Thomas Cook?
Thomas Cook is taking urgent money-saving measures which include:
- Axing 150 roles from its head office in Peterborough
- Possible further store closures, having already announced plans in March to shut 21 stores and axe 320 retail roles
The debt-laden company has struggled recently, as a fall in demand for package holidays and intense online competition resulted in a string of profit warnings.
The firm has sold 57 percent of its summer holidays, while tour operator bookings are down 12 percent for the summer season.
Is my holiday safe?
Holidaymakers will be pleased to hear that they won’t lose out in the unlikely event of Thomas Cook’s closure.
That’s because Thomas Cook holidays are ATOL (Air Travel Organiser’s Licence) protected
UK travel companies which sell package holidays and flights have to ATOL protect them.
This means customers who have booked holidays with the firm are protected and can’t get stranded abroad or be left out of pocket.
So if you have already booked a holiday with Thomas Cook, it will be safe.
Can you still book a Thomas Cook holiday?
Thomas Cook will continue to operate holiday sales despite stark profit warnings.
The company hopes business will pick up as Brexit draws nearer.
The group confirmed it had secured a new additional £300 million financing deal with its lenders to help boost its balance sheet.
