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
17.60
(-1.14)
ZAR/GBP
22.98
(-0.38)
ZAR/EUR
20.74
(-0.25)
ZAR/AUD
12.59
(+0.08)
ZAR/JPY
0.17
(-0.71)
Gold
2033.81
(-1.70)
Silver
28.09
(-5.62)
Platinum
958.00
(-4.00)
Brent Crude
45.10
(-0.18)
Palladium
2149.00
(-3.03)
All Share
56757.73
(-1.56)
Top 40
52435.65
(-1.72)
Financial 15
9897.96
(+0.10)
Industrial 25
74671.49
(-1.98)
Resource 10
58948.78
(-1.89)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 926 votes
It depends on how the funds are used.
74% - 6216 votes
No. We should have gotten the loan elsewhere.
15% - 1277 votes
Vote