By Daniel Hunter
In the three months ended 31 December 2011, revenue at Thomas Cook was up 3% to £1,861 million.
This reflects, according to the company, increased activity in Northern Europe and Airlines Germany and a maiden contribution from the Co-operative and Russian joint ventures.
• Revenue at £1,861m in the first quarter was up 3% on prior year mainly as a result of increased activity in Northern Europe and Airlines Germany and a maiden contribution from the Co-operative and the Russian joint ventures (£68m);
• As expected, the seasonal underlying loss from operations of £91m was higher than the prior year (loss of £37m) as a result of tougher trading conditions and rising fuel costs which have impacted margins. In particular, the West & East Europe segment reported significantly increased losses in part because of ongoing disruption in MENA;
• We continue to focus hard on implementing our UK turnaround strategy and we are on track to deliver the planned £35m benefit in the current financial year;
• We have taken action to adjust capacities where appropriate and, for both the winter and summer seasons, in many markets, we have less left to sell than for the comparable period.
“I have been encouraged by how our bookings have developed, particularly in the UK where our market share for both the winter and summer seasons remains broadly stable," Sam Weihagen, Group Chief Executive, said.
"As expected, the first quarter has been adversely impacted by the uncertain economic environment across Europe, input cost inflation and the ongoing disruption in MENA.
“We continue to work hard on restructuring the UK business and a full strategic review of the Group is progressing well. As part of this review, the Board has agreed that the Group will look to sell its majority stake in its publically quoted Indian subsidiary. This is in addition to the previously announced non-core asset disposal programme where we have made good progress.”
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