Thomas Cook slashes annual losses

(Shutterstock)
(Shutterstock)
Shutterstock [http://www.shutterstock.com]
London - British travel firm Thomas Cook on Thursday announced a large reduction in annual losses as a result of widespread cost-cutting.

Losses after tax dropped to £199m in the year to the end of September from £585.7m in 2011/12, Thomas Cook said in a results statement.

Chief executive Harriet Green said: "I'm delighted to report that the first 365 days in the transformation of Thomas Cook have been a great success.

"We've taken out more cost more quickly than originally planned," she added.

The company earlier this year announced plans to axe 2 500 jobs in Britain as part of its turnaround efforts after being plagued by the eurozone debt crisis, unrest in Egypt and high fuel costs.

"Compared to last year, (current) winter bookings have been adversely impacted by social unrest in Egypt, which has resulted in significantly reduced demand to that destination," said Thomas Cook.

The company added that earnings before interest payments and tax (EBIT) came in at  £13m compared with a loss of £170m one year earlier.

It was the group's first operating profit since 2010.

Annual group revenue meanwhile edged up 1.3% to £9.315bn.
ZAR/USD
16.98
(+0.31)
ZAR/GBP
21.21
(+0.19)
ZAR/EUR
19.17
(-0.06)
ZAR/AUD
11.83
(+0.02)
ZAR/JPY
0.16
(+0.30)
Gold
1776.32
(+0.07)
Silver
18.12
(+0.64)
Platinum
818.00
(+1.17)
Brent Crude
42.85
(0.00)
Palladium
1920.99
(+0.30)
All Share
55086.97
(+1.04)
Top 40
50691.20
(+1.02)
Financial 15
10273.56
(+1.22)
Industrial 25
76890.28
(+0.44)
Resource 10
51004.60
(+1.73)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
I'm not really directly affected
18% - 1622 votes
I am taking a hit, but should be able to recover in the next year
23% - 2130 votes
My finances have been devastated
34% - 3191 votes
It's still too early to know what the full effect will be
25% - 2316 votes
Vote