A slowdown in late summer bookings from German customers and an earnings forecast no higher than City expectations saw shares in Thomas Cook drop 6% today.
However, chief executive Harriet Cook said: “We have transformed the business over the last two years and expect to report our ninth-consecutive quarter of improved profitability in November.
“I am encouraged that this is despite the Egypt crisis, overcapacity in the European market and the strength of the pound against other currencies.”
Thomas Cook said it expects headline earnings for the year which ends this month to come in at between £315 miliion and £335 million. That compares with analysts’ average forecasts of £334 million and the previous year’s £263 million.
In the UK market, summer (which stretches until the end of October at Thomas Cook) is 92% sold which is similar to last year at this stage but prices are 4% lower largely due to overcapacity.
Germany, which had been booming, has slowed to normal levels as consumers worry about events surrounding Ukraine.
The company’s shares fell 7.5p to 122.5p. They hit a peak of 189p in March this year.
