Thomas Cook Reports Slight Third-Quarter Operating Loss

Thomas Cook has posted an upbeat quarterly trading statement, saying it is
confident of meeting full-year expectations. It also reported a
smaller-than-expected operating loss for the first quarter.

The group, Europe’s second-biggest travel firm, said it had gained by taking
capacity out of the market to avoid having to sell cut-price holidays in the
late market. Its ability to switch its destination mix to non-Euro destinations
including Turkey and Egypt as Sterling weakened contributed to its bullish
trading.

The company made an operating loss of £27.4 million in the three months to 31
December 2008, down from £57.3 million a year earlier. Thomas Cook said summer
2009 trading in Britain had been encouraging and it had 10 percent less holidays
left to sell compared to a year ago.

For the summer, it said the current position looked “robust”. “Cumulative bookings are tracking in line with capacity reductions of 11 percent. However bookings have been stronger over the last four weeks and are down only 6 percent,” he added. “We have now sold 43 percent of our capacity, in line with the prior year, and have 10 percent less left to sell than last year overall and up to 15 percent less left to sell in the
off peak months. Average selling prices are up 9 percent.”

Thomas Cook also confirmed its acquisition of a majority stake in Gold Medal is
expected to be completed in March, although subject to European Commission
approval. It also acquired Med Hotels from Lastminute.com during the quarter,
which it intends to combine with Hotels4U, which it acquired in February 2008.