Thomas Cook said its summer bookings fell as security concerns meant more holidaymakers opted for breaks in Spain over Turkey, Tunisia and Egypt, outstripping its efforts to adjust flights. Despite shifting 1.2 million airline seats from the eastern to the western Mediterranean, the British travel operator said bookings were down by 5 percent and full-year profit would now be at the bottom end of market forecasts.
Thomas Cook shares dropped 19 percent to a three-year low of 72 pence after its first-half results, on a day travel stocks fell after the disappearance of an EgyptAir flight. Chief Executive Peter Fankhauser said Turkey, its second most popular destination last year, had not recovered as he had hoped after an attack on tourists in Istanbul in January.
Thomas Cook said operating profit for its year to end-September 2016 would be between 310 million and 335 million pounds. Analysts have forecast a range of 310 million to 359 million. First half revenue grew slightly to 2.67 billion pounds, it said, and an underlying operating loss narrowed by 5 percent to 163 million pounds thanks to an improvement in margins. It said it continued to expect to pay a dividend this year.