Thomas Cook counts costs of Egypt and Tunisian unrest

Thomas Cook

Thomas Cook

Holiday firm Thomas Cook has revealed the political problems encountered in Tunisia and Egypt will leave a £20million hole in their profits this year.

The company has had to deal with 150,000 cancellations as a result of the trouble, as well as the cost of bringing tourists back from the troubled areas.

Whilst UK trade was struggling, mainly because of “fragile consumer sentiment,” the company said bookings across Europe were doing particularly well, and were well up on last year.

Thomas Cook did reveal they are flying to both Egypt and Tunisia again now, from Germany, the UK, Holland, Belgium and France, and two further airports in Northern Europe will resume flights there next month.

The company explained that the £20million bill would consist of 75% cancellations, and 5% repatriation costs, and added that the 20% fuel price increase since January had meant they were having to include fuel supplements in their holiday bookings.

Chief Executive Manny Fontenla-Novoa was looking on the positive side though, adding, “Overall, the business in performing well, given the disruption caused by the unrest in Egypt and Tunisia.”

“Summer bookings are ahead of last year across most segments, with particularly strong growth in our German tour operator and airline.”

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