Thomas Cook has indicated that it expects to exceed the €140 million in savings predicted at the time of its merger with MyTravel.
The company which is owned by German firm Karstadt Quelle and sells around six million holidays a year, confirmed as much in a statement which also predicts full-year results to be in line with expectations but that the expected UK revival for summer 2007 "has not been as strong as we expected" - despite a 5% cut in capacity - due to high fuel costs and the impact of Air Passenger Duty.
Customers will have to pay approximately €60m of additional Air Passenger Duty, which has acted as a brake on prices. In a statement, the company said that cumulative bookings are 2% ahead of 2006, and in the last month bookings are 9% ahead of the same period last year. As a result, 26% of current capacity has been sold, 3% more than at the same time last year. But average selling prices are 1% down year on year.
Chief executive Manny Fontenla-Novoa also confirmed that the company is ready to expand further through possible acquisitions in Germany, Russia, China and India: “We’re in great shape to take part in any further industry consolidation and are reviewing acquisition opportunities. We’ll be reviewing the marketplace taking stock of opportunities because consolidation has changed the landscape.”
As many as 2,800 jobs could be sacrificed as a result of cost-cutting plans.
