Thomas Cook bounces back from slump
Thomas Cook raised its revenue and cost-cutting targets in the latest stage of a profit-boosting turnaround at the world's oldest travel firm, sending its shares to a near three-year high.
The tour operator is recovering from a dramatic slump over the past three years, hit by the eurozone debt crisis, high fuel costs and political turmoil in holiday destinations such as Greece, Egypt and Tunisia.
Since travel industry outsider Harriet Green took over as chief executive 16 months ago, Thomas Cook has achieved a steady improvement in its finances through job cuts, store closures and a series of disposals to reduce debt.
The company yesterday posted earnings before interest and tax up a forecast-beating 49pc to £263m (€316m) in the year to September 30, helped by strong demand for fixed-price holidays to Spain, the Canary Islands and Turkey.
Ms Green said that the business was now back on a firm trajectory of profitable growth and that she was confident of delivering "significantly more" in the coming years.
Thomas Cook aims to cut costs by £440m by 2015 -- 10pc more than previously expected -- and to deliver a further £440m of savings by 2018.
It also raised its target for revenue from new products, such as exclusive hotels and city breaks, by 40pc to £700m by 2015. (Reuters)