0800 644 6080
Call FREE from Landline and Mobile
Est. 1989

Thomas Cook Reports £1.46bn Half-year Losses

Written by: Keith Tully

Published: 16th May 2019

Thomas Cook storeThomas Cook, the UK’s oldest package holiday business, has reported operating losses worth £1.46 billion for the six-month period to the end of March 2019.

The company has cited Brexit uncertainty as a key contributing factor in its disappointing performance as significant numbers of UK consumers opted to holiday closer to home instead of visiting EU countries in the upcoming summer months.

“The first six months of this year have been characterised by an uncertain consumer environment across all our markets,” Peter Frankhauser, the company’s chief executive, said in a statement.

“The prolonged heatwave last summer and high prices in the Canaries reduced customer demand for winter sun, particularly in the Nordic region, while there is now little doubt that the Brexit process has led many UK customers to delay their holiday plans for this summer.”

Another major financial headache for Thomas Cook has been the necessity for it to write down much of the value associated with a package holiday company it acquired in 2007.

Indeed, that revaluation of MyTravel is said to account for most of the losses incurred by Thomas Cook during the first half of the financial year for the company.

The need to revalue MyTravel is described as having arisen because of “the weak trading environment” currently in evidence.

The number of tour operator bookings recorded by Thomas Cook were down 12 per cent in the six months to the end of March as compared to the same period of the year before.

Meanwhile, the company has only been able to sell 57 per cent of the holiday deals it made available for the summer of 2019, which is similar to the figures recorded fo6r the year before.

The Association of British Travel Agents (Abta) has made clear that trading is tough for travel agents across the UK at present in large part because so many people are waiting to see what happens with Brexit before making a holiday booking.

Thomas Cook has said that it expects to be faced with further operational headwinds in the coming months as Brexit uncertainty lingers and as the impact of “higher fuel and hotel costs” continues to be felt.

Keith Tully

Keith Tully

Join Keith Tully on Linked In Follow Keith Tully on Twitter

Keith has been involved in Business Rescue since 1992, during which time he’s worked for both independent and national firms. His specialties include company restructuring matters and negotiating with HMRC on his clients behalf.

Meet our Team of Experts
Director Support - Business suffering from Cash-Flow Problems?
If your company is financially distressed, we also offer the below services:
Business debt recovery

  • Recover Unpaid Invoices of £5k+
  • Expert Credit Control Services
  • Stop Late Payers & Bad Debts
Visit Site
Time to pay experts

  • Get Breathing Space with HMRC
  • Support with Business Tax Arrears
  • 35 Years HMRC Negotiation
Visit Site
UK Business Finance

  • Rejected for a CBILS Loan?
  • Get Emergency Business Funding
  • Supporting 1000+ UK Companies
Visit Site
Who we help
  • Company Directors
  • Finance Directors
  • Sole Traders
  • Accountants
  • Small Businesses
  • Large Businesses
  • Partnerships
Contact our team
Jonathan Munnery
Gillian Sayburn
Julie Palmer
or Find your Nearest Office

Here at Real Business Rescue we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY

Business Rescue Advice for Directors
Free Guide for Limited Company Directors
Business Rescue Advice for Directors
  • How to manage company cash flow problems
  • Advice on dealing with HMRC
  • Understanding rescue and closure options
  • And much more...
Free Guide Download
Dealing with your Insolvent Clients
Business Rescue Guide for Accountants
Dealing with your Insolvent Clients
  • Helping you advise insolvent clients
  • Spotting signs of client distress
  • Exploring business rescue options
  • And much more...
Free Guide Download
Our numbers speak for themselves
Number of UK Offices
Directors Helped
Licensed Insolvency Practitioners