Thomas Cook has issued a warning that annual profits would be lower than expected and is forecasting they will come in £30 million lower than expected.
This is the second profit warning it has issued in two months. The airline unit Thomas Cook Airlines operates a fleet of 35 aircraft to 72 destinations as part of its network.
The news led to shares in the company plunging this morning. Earnings at its tour operator unit were £88 million lower in the year to September, as people delayed booking holidays because of the prolonged heatwave at home.
Underlying earnings will be £250 million to the end of September, £58 million lower than in 2017, Thomas Cook said. Additional charges, including disruption to flights, were partly responsible for this decline.
Thomas Cook said its bookings for this winter were three per cent down on last year and chief executive Peter Fankhauser said it had been a “disappointing year”.
“Looking ahead, we must learn the lessons from 2018 and go into the new year focused on where we can make a difference to customers in our core holiday offering,” he added.
Last year, Thomas Cook Airlines welcomed 7.3 million passengers and operate 35,553 flights with a load factor of 90.2 per cent.