Thomas Cook holiday sales in Europe have improved despite the current economic problems in the region.
In its latest trading update, the travel firm said that while trading in continental and northern Europe had improved since the first quarter, summer bookings were down 4%.
In the UK, summer bookings were 4% higher than last year.
The group also reported a 10% rise in online bookings, and a 20% increase in bookings for their concept hotels. In addition, the statement said the 2014-15 winter season was “now almost fully sold”, and the summer was “more than 50% sold”.
“Our bookings for the full year are developing well, especially in the UK and Airlines Germany,” Peter Fankhauser, its chief executive, said
“The tough trading conditions we reported previously in some markets are showing early signs of improvement, and our new product and winter sun initiatives are leading to growth.”
But Thomas Cook warned that if the currently weak euro and Swedish krona rates continued for the rest of the year, there would be a negative impact of about £25m.
Fankhauser took over from Harriet Green in November. She helped turn around the company, moving more operations online, and cut more than 2,500 jobs.
Fosun, a Chinese conglomerate, bought a 5% stake in Thomas Cook earlier this month for £91.9m and said it intended to boost its shareholding to 10% in future.
“Thomas Cook’s performance looks to be lacklustre when compared with TUI,” said Wyn Ellis, an analyst at Numis. “The shares have had a good run following the strategic tie-up with Fosun, and we believe that they may give up a little of that performance. We expect modest reductions in consensus forecasts to take account of currency movements. We are not changing our forecast of £350m of 2015 earnings before interest and tax.”
Martin Brown, an analyst at Shore Capital, said: “Thomas Cook’s pre-close trading statement indicates that current trading is in line with management expectations.
“While trading remains difficult in some markets, it is pleasing to see that trading in continental Europe and northern Europe has continued to improve since the first quarter statement, confirming later booking trends for this year.”
