Travel firms call off Condor deal

Plans by German carrier Air Berlin to buy a majority stake in Thomas Cook’s charter airline Condor have been scrapped due to soaring jet fuel costs.

Air Berlin had agreed to buy a 75.1% stake in Condor in a £480m (€601.5m) deal, which would have seen Thomas Cook take a near-30% stake in the German firm.

The parties blamed “significantly changed” economic conditions – the price of kerosene has more than doubled – for their decision.

They pledged to continue discussions in an attempt to find an alternative plan, but “without being subjected to time pressure”.

Shares in both companies rose today, even though Thomas Cook said it was suspending share buybacks as a result of today’s announcement. Condor, which was set up in Frankfurt in 1955, flies from several airports in Germany.