AFP, London :
British travel firm Thomas Cook on Thursday launched a review of its airline after posting a worsening quarterly loss on challenging trade.
The company, which offers package holidays to northern Europeans looking for summer sunshine, has decided to focus more on hotels.
“We are today announcing a strategic review of our group airline,” said chief executive Peter Fankhauser in a results statement. “We are at an early stage in this review process which will consider all options to enhance value to shareholders and intensify our strategic focus.
“We will provide an update on this process in due course.” Thomas Cook’s airline business operates a fleet of 103 aircraft, about one quarter of which serve long-haul destinations.
It has however reduced 2019 capacity in the face of challenging conditions, as holidaymakers eye economic uncertainty arising from Brexit.
“Brexit is in many customers’ minds,” Fankhauser admitted in a conference call to reporters.
The group has sought to slash costs after its 2017/2018 performance was also knocked badly by rising costs and a long period of hot European weather over the summer – which saw customers put off last-minute holidays abroad.
Underlying operating losses widened to o60 million ($78 million, 68 million euros) in its first quarter, or three months to December 31, compared with o46 million a year earlier, Thomas Cook also revealed Thursday.
British travel firm Thomas Cook on Thursday launched a review of its airline after posting a worsening quarterly loss on challenging trade.
The company, which offers package holidays to northern Europeans looking for summer sunshine, has decided to focus more on hotels.
“We are today announcing a strategic review of our group airline,” said chief executive Peter Fankhauser in a results statement. “We are at an early stage in this review process which will consider all options to enhance value to shareholders and intensify our strategic focus.
“We will provide an update on this process in due course.” Thomas Cook’s airline business operates a fleet of 103 aircraft, about one quarter of which serve long-haul destinations.
It has however reduced 2019 capacity in the face of challenging conditions, as holidaymakers eye economic uncertainty arising from Brexit.
“Brexit is in many customers’ minds,” Fankhauser admitted in a conference call to reporters.
The group has sought to slash costs after its 2017/2018 performance was also knocked badly by rising costs and a long period of hot European weather over the summer – which saw customers put off last-minute holidays abroad.
Underlying operating losses widened to o60 million ($78 million, 68 million euros) in its first quarter, or three months to December 31, compared with o46 million a year earlier, Thomas Cook also revealed Thursday.
