Travel Company Thomas Cook Reports Losses Due To Brexit

Vanessa Conneely - 16th May 2019

Firm says customers are delaying their Summer holiday plans.

British travel firm Thomas Cook – which regularly flies to Malta – reported a €1.7 billion loss for the first half of this year.

The company says it has little doubt that its downturn in sales has been partly caused by the uncertainty of Brexit which has been delayed until October 31st, as people wait to see what happens.

However, the company was already under performing after a weak 2018. Chief Executive Peter Fankhauser said that during the first six months of the year there had been "an uncertain consumer environment across all our markets. 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.”

The firm also said it had received "multiple" bids for its airline after it decided to sell off its fleet of 103 jets and free up funds for the business.

It also closed more than 20 of its retail stores and says the companies currency arm ‘Thomas Cook Money’ is also under review.

Mr Fankhauser said that looking to the rest of the year "the continued competitive pressure resulting from consumer uncertainty is putting further pressure on margins".

"This, combined with higher fuel and hotel costs, is creating further headwinds to our progress over the remainder of the year."

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