Thomas Cook shares continue to slide

Thomas Cook shares continue to slide

Shares in Thomas Cook are continuing to fall following last week’s profit warning. 

On Monday, shares in the group were down more than 18% and have tumbled almost 70% since last week.

The airline and travel agent has downgraded profit forecasts twice in two months, blaming the heatwave for affecting bookings over summer.

“2018 was a disappointing year for Thomas Cook, despite achieving some important milestones in our strategy for transforming the business,” said the group’s chief executive Peter Fankhauser last week. 

“After a good start to the year, we experienced a larger-than-anticipated decline in gross margin following the prolonged period of hot weather in our key summer trading period,” he added.

“Our final result is expected to be around £30 million lower than previously guided, due to a number of legacy and non-recurring charges to underlying EBIT. Within this, profit in our tour operating business fell £88 million as the sustained heatwave restricted our ability to achieve the planned margins in the last quarter.”

Full-year profit expectations were down by £30 million. Earnings to the end of September will be £250 million. Sales of holidays to its own-brand hotels increased by 15%.

Shares in the group (LON: TCG) are currently trading down 18.60% at 24,50p (1303GMT).