Thomas Cook shares rise on winter bookings outlook

Holiday firm Thomas Cook has said that booking volumes and prices for the coming winter were ahead of last year, sending its shares to their highest in nearly two months.

The company is forecasting growth on a constant-currency basis for the 12 months ending September 30, despite a previously announced €34.3m hit to operating profit from cancelled holidays to Tunisia in the aftermath of the beach massacre there in June.

Demand for holidays in its fourth quarter had been helped by poor weather in Scandinavia, Thomas Cook said yesterday, adding that, since July, there had been a significant increase in the number of customers picking Greece and Egypt as destinations.

Shares in the company, which had lost about 17% of their value over the last three months, rose 4% at one stage yesterday.

“Today’s in-line update is welcome given recent share price volatility,” Jefferies analysts said in a note.

TUI Group, Thomas Cook’s larger rival, had said on Wednesday that it had seen robust trading over the summer.

It expects bookings for the winter season to develop in line with its expectations.

Thomas Cook is due to report its annual results on November 25.