Thomas Cook not seeing expected profits
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Posted on: September 3rd, 2007 by Neill Zerk
Even though the UK experienced some rather poor summer weather, this did not lead to the UK summer holiday recovery Thomas Cook Travel had hoped for. Thomas Cook Travel, one of the oldest travel agencies around, merged with MyTravel in June and has come out swinging against BAA for their poor maintenance and services at UK airports.
Manny Fontenla, chief executive officer at Thomas Cook said, “The service our clients are experiencing [at BAA run airports] is not good enough. The length of the queues are not good enough. That’s our major area of concern.”
Despite the lag in post-peak travel in the UK, the company still expects its overall performance in 2007 to come in on schedule. The comparison between the slight drop in customers with the slight rise in selling prices balance the score sheet out for now.
Fontenla continues, “While we continue to see an improvement in trading compared to summer 2006, we have not been able to fully recover the increased cost of fuel by charging higher prices. In addition, our customers are having to pay approximately €60m of additional Air Passenger Duty, which has acted as a brake on prices.”
www.thomascook.com