Thomas Cook forecast lower than expected annual profits due to weaker trading in the UK after reporting an underlying loss of £104 million for the nine months to June 30.
Group revenue for the three months to June was 9% down on a year ago, following a reduction in winter capacity and losses caused by the volcanic ash disruption in April.
However, third-quarter profits were 10% up year on year if the ash impact is excluded.
Total summer 2010 bookings in the UK to last weekend were 1% down on the same period in 2009, with bookings in the last four weeks 2% down year on year, but the average selling price 3% up.
Thomas Cook reported 85% of the summer programme sold, in line with last year, after maintaining capacity for the season at last year’s levels.
The restated forecast and lower figures follow a similar statement from Tui Travel yesterday.
The two groups dominate the European holiday market as the top-two travel companies in the UK, Germany and Scandinavia.
Thomas Cook chief executive Manny Fontenla-Novoa described trading in the UK as “softer than expected”, but said:
“We always expected this year to be challenging given the uncertain economic environment and impact of weak sterling on our UK business.”
Fontenla-Novoa reported a £25.6 million underlying operating profit for the third quarter, but a pre-tax loss of £369 million for the nine months – compared with a £306 million pre-tax loss a year ago. That translated into a pre-tax profit of £56 million at year’s end.