Partner Article

Thomas Cook witness increase in half-year losses

Thomas Cook has witnessed a sharp increase in its half-year losses, but have pledged to take “decisive action” to improve their position.

In the half year to 31 March, the travel group reported a pre-tax loss of £713 million, up from £269 million last year.

The company has struggled due to the wider downturn in the global travel sector, and earlier this month secured a £1.4 billion refinancing package which will give the company a further three months to repay debts.

The travel agent also received shareholder approval to sell its investments in a Spanish hotel business, and backing for the sale and lease of some of its aircraft. This will add £239 million to its finances.

The increase in losses was attributed to a one-off charge of £300 million after it was forced to write down the value of some parts of its business. With this and other exceptional items removed, the company’s pre tax loss was £328 million.

The firm is set to take on a new chief executive in July. Interim boss Sam Weihagen said that the company is now moving forward with efforts to “re-energise our business and begin to rebuild profitability, reduce debt, and continue to provide a fantastic holiday experience for our customers”.

This was posted in Bdaily's Members' News section by Ruth Mitchell .