Big changes afoot as Thomas Cook stare down £590m loss

28 November 2012

A curiosity, tomorrow

Thomas Cook's year got much worse as they saw their annual loss slumping to a frankly dreadful £590million. This, it seems, is the price of restructuring and overhauling everything, cutting aircraft fleet and flogging off hotels.

However, chief exec Harriet Green, is still optimistic, saying that the massive loss doesn't actually reveal the improvements that have been made recently.

"These results reflect the major issues that Thomas Cook faced last year, but they mask the material improvement that we made in the fourth quarter," said Green. "Our brand has demonstrated its strength by recovering all the ground lost during last year's difficulties and we have identified significant further efficiency improvements."

It'll still be a trying time for the company as Green announced a further £100million of cost-cutting and possibly more after that. This invariably means more job losses on top of the 149 stores already closed and five head office buildings.

And Green will have to act quickly, with debts mounting after Thomas Cook had to get an additional £200million of loans from the banks to stave off collapse. There's the small matter of huge air fuel costs of £100million to contend with too.

Surely it is only a matter of time before Thomas Cook collapses, or can a minor miracle occur?

TOPICS:   Travel   High Street News

3 comments

  • Phil K.
    An incompetent over-promoted woman ? Got the job because of whats between her legs not whats between her ears - and her connections with similar types ? Well....that doesn't happen very often does it ? Yes, actually all the time. Its one of the main reasons the BBC is a monumentally expensive rotting whale.
  • Sicknote
    @Phil Don't get me started with the BBC..!! If you were a female of sub-Saharan ethnicity, pregnant and with a mild physical impairment you'd be able to walk into the top job at the BBC. I cancelled my TV license the other day citing that I wasn't prepared to support what is tantamount to a 'kiddy fiddling club'; as long as I stick to IPlayer and other on-demand services my conscience is clear. As for Thomas Cook - they're basically fucked over a barrel and won't be here this time next year.
  • Gabriella
    Good hope they go in to administration. Awful company, rotten staff. I have my reasons for saying it. Hope the Coop Travel bit survives though. Why they merged with that rubbish is beyond me.

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