Thomas Cook has described its summer trading as strong across all its main markets as it prepares for its AGM. A statement confirmed that capacity cuts had put Thomas Cook into a strong position with capacity currently 10% lower and 19% fewer holidays to sell than for the same period in 2007.
Thomas Cook Group chief executive Manny Fontenla-Novoa said: “We are particularly encouraged by our much lower level of stock left to sell in short haul and long haul. Average selling prices are currently 2% ahead.”
Overall, the board said it was confident that the business will meet its expectations for the current financial year and dismissed fears that the weakening pound against the Euro would be detrimental to future trading. Mr Fontenla-Novoa added: “We have successfully and swiftly integrated our predecessor businesses, reported increased profits for 2006/07, entered the FTSE 100 index and made a number of key strategic acquisitions.
“Over the past twelve months we have laid strong foundations for future growth. I am satisfied with our current trading and am confident in our strategy to grow the business.
"We're mindful that the euro is much stronger and that may influence consumer choices or destination choices. But this is where our flexibility for non-euro countries such as Turkey comes into play."
Thomas Cook has continually looked for opportunities in emerging markets by acquiring businesses in Egypt, India and the Middle East. Other acquisitions include travel website Hotels4U and UK-based luxury travel company Elegant Resorts. Reports also suggest the group is making “good progress" in talks with a Russian outbound tour operator, which would boost sales of Egypt holidays - a favorite destination Russians.
