p14 City feb19 17/2/10 15:32 Page 10
City & finance
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ACCOMMODATION ONLY.
Thomas Cook plans to boost medium-haul capacity to offset
Websites show
the weak pound putting pressure on its long-haul margins,
while there’s good news for its bed banks and Glasgow
100% growth
airport operations in its latest results. Chris Gray reports
THOMAS COOK’s accommodation-only trade
websites are trading 100% up year-on-year.
More mid-haul,
Chief executive Manny Fontenla-Novoa said
the acquisition of Medhotels and Hotels4U had
transformed Cook’s position in the accommoda-
tion-only sector.
“We have gone from not being a presence in
bigger margins
the market to being the market leader in the
supply of travel trade components,” he said. THOMAS COOK is experiencing a gap in those destinations,” he said. Short-haul
In total, all Cook’s independent business, profit margin between long and capacity has also been cut by 20%.
which include the bed banks, Gold Medal, Elegant medium-haul as high as 15% and Fontenla-Novoa said that in the
Resorts, and DIY website sales, now account for expects the difference to widen further. pre-Christmas period Cook’s UK trad-
25% of overall UK revenue. Chief executive Manny ing was down 20%, but much of
Fontenla-Novoa said he that decline was covered by
saw no evidence of a capacity cuts.
recovery in long-haul Trading since the
this year or next year end of the bad weather
and expected the differ- in January was up 15%
ence in profit margin to over four weeks, and
widen in the lates sea- the first week in Feb-
son. ruary was up by
The difference in around 20%.
profit margin is one of He added that
SCOTLAND SALES.
the reasons behind overall, Cook
Post Flyglobespan,
Cook’s expansion was still on
into mid-haul, which course to meet
Glasgow takes off
Fontenla-Novoa said
Results
its target of a
would make up 82% of 6% margin, and
Cook’s stock this win- TRADING UPDATE FOR THREE MONTHS it achieved 4.5% in
BOOKINGS with Thomas Cook out of Glasgow ter, 75% in the summer TO END OF DECEMBER 09 (UNAUDITED) the first week of
airport for the four weeks to February 7 were up and more next year. Revenue £1.7m (2008 £1.8m) February.
53% on the previous year, following the collapse Speaking to analysts Operating loss £41.3m (2008 £27.4m) He said the com-
of Flyglobespan. after unveiling Cook’s Pre-tax loss £81.5m (2008 £112m) pany had no plans to
Chief executive Manny Fontenla-Novoa said first interim manage- start adding capacity
Cook had based another aircraft at Glasgow after ment statement since UK WINTER TRADING UP TO again, as rival Tui
Flyglobespan went bust in December, which had October 1, Fontenla- FEBRUARY 7, 2010 Travel UK has started
paid off. Novoa said long-haul Average selling price up 6% to do (TTG February
Tui has said it will add more capacity in Scot- was the area under Cumulative bookings down 10% 12).
land (TTG February 12) but Fontenla-Novoa said most pressure from Previous four weeks’ bookings down 6% “We think that
Cook did not plan to do so, as it did not believe margins, partly be- Planned capacity down 8% any bounce back in
the market in Edinburgh was as strong as cause of the weakness demand should go
Glasgow. of the pound against UK SUMMER TRADING UP TO into margins.
“We have a strong base in Glasgow but we do the dollar. (TO FEBRUARY 7, 2010): “We have worked
not get into putting more into Edinburgh because “That’s the market Average selling price up 2% hard to get supply and
it’s a very short season and our experience is that we see being the Cumulative bookings down 8% demand right and we
that the margins do not work for us.” toughest this year and Previous four weeks’ bookings up 15% don’t want to change
that’s why we have Planned capacity down 3% that balance,” he
■ Manchester airport report, p18 taken 20% capacity of added.
14 19.02.2010
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