Nov 23, 2016
Weak pound buoys Thomas Cook
A year of disruption and terrorist attacks in Europe has stalled growth at Thomas Cook, but the slump in the value of the pound following the UK's Brexit vote has helped the travel company keep profits broadly on track. "I don't think it will a surprise you if I say that 2016 has been a difficult year for tourism," said Peter Fankhauser, chief executive of Thomas Cook. Thomas Cook shares rose 6.3 per cent to 78.2p after the announcement on Wednesday morning. Prior to a turbulent 2016, Thomas Cook had staged a revival after nearly collapsing in 2011 and returned to profit in 2015. The company has been hard hit in Germany, its largest market in continental Europe, with underlying earnings before interest, tax, depreciation and amortisation falling by £22m on a like-for-like basis to £72m. In response to security concerns from rattled travellers, Thomas Cook has shifted its emphasis towards Spain, the Canary Islands and long-haul destinations such as the US, Cuba and South Africa.
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