Thomas Cook says summer trade strong

Thomas Cook, Europe's second-largest travel company, said trading for this summer has continued to be strong in all its major markets with demand for holidays remaining robust despite fears of a consumer slowdown.

The group, created last year from the tie-up of Arcandor's travel unit and UK company MyTravel, made a currency adjusted pro forma operating loss of €193.6 million in the six months to March 31, compared with a 267.6 million loss the year before.

Thomas Cook said early trading for winter 2008/9 in the UK and northern Europe has been "encouraging".

The group said it remains confident it will meet its expecations for the current financial year despite the higher cost of fuel and the translation impact of weakening sterling.

Fuel requirements for the remainder of the year are hedged 100 per cent for crude and 90 per cent for jet fuel, it said. Group foreign currency requirements for the remainder of the year are 100 percent hedged, it added.

Thomas Cook confirmed it is on track to achieve merger synergies in excess of €200 million by 2008/9, despite the 15 per cent depreciation of sterling against the euro.

It is also continuing to target €620 million of operating profit in 2009/10.