Thomas Cook Cuts Down on Losses after Merger

The combined Group successfully reduced the pro forma seasonal loss before tax in the 6 months to April 2007 by 25.4 million euros, or 8 percent, to 293.0 million euros, according to figures released by Thomas Cook Group. The pro forma seasonal operating loss in the six months to April 2007 was reduced by 22.9 million euros, or 7 percent, to 323.1 million euros.

Thomas Cook also reported strong cash flow and balance sheet with progress being made towards integrating the two companies. Trading conditions in the UK remain challenging for summer 07.

Consequently, Thomas Cook has taken actions throughout the year to reduce capacity year on year by 5 percent. Against this, cumulative bookings are 5 percent behind the prior year and the group has sold 74 percent of its capacity, which is in line with the prior year. Average selling prices are flat year on year.

In Northern Europe, cumulative bookings for summer 2007 are currently 2 percent behind the prior year on 1 percent more capacity. To date, Thomas Cook has sold 70 percent of our capacity, which is 2 percent behind the prior year, and average selling prices are 3 percent up.

In Continental Europe, bookings are currently 7 percent behind the prior year with average selling prices 2 percent ahead. Trading conditions in the group’s largest market, Germany, remain challenging. However, the group continues to align capacity to the reduction in bookings.

While conditions for the summer remain challenging in a number of markets, the Board believes that in the absence of significant adverse events, such as the ones the industry experienced last year, trading conditions in the UK for the remainder of the summer season should be significantly improved. On that basis, the Board believes that its financial performance for the full year 2007 will be in line with its expectations.