Travel giant Thomas Cook weathers downturn

UK holidays giant Thomas Cook today said it was in good shape for the year ahead after consumers showed no sign of cutting back on major foreign trips.

The company, which merged with Airtours rival MyTravel last year, said demand for both winter and summer holidays exceeded supply.

It added that tougher economic conditions had not impacted on trading, partly due to the “high priority” that European consumers place on foreign holidays.

The company said it also benefited from reduced capacity on loss-making routes, particularly to long-haul destinations.

Thomas Cook said: “By managing the number of holidays to be sold, we believe we are in a position to benefit from higher average selling prices and are less exposed to any future change in demand.”