Thomas Cook sees signs of recovery on narrowing losses

Thomas Cook yesterday said it saw signs of a recovery after having struggled over the past few years.

According to the world's oldest travel group, its turnaround plan was on track with losses narrowing to £69.8 million during the last three months of 2012, as against £91.1 million a year earlier.

The past few years had been difficult for the 172-year-old group, as falling sales led to a number of profit warnings. It has also been forced to renegotiate bank loans and make divestments to cut debt.

According to analysts, the company had been recovering after Harriet Green took over as chief executive last May. Under her stewardship, the travel group had disposed a few businesses to cut debt, including the sale of its Indian operations as also a number of Spanish hotels.

Sales for summer holidays rose 4 per cent as  compared with 2012 even as bookings in January were ahead 2 per cent.

Green said the company had seen stronger operating performances in its major markets - the UK, Germany and the Nordics. She added, although global economic conditions and consumer confidence remained challenged, its business transformation was on course.