It seems the tour operator and airline Thomas Cook is in a bit of a fiscal trouble zone, with it postponing its disclosure of the groups its full-year results to allow it time to talk to the banks over easing the money burden.
Thomas Cook blames a “deterioration of trading” in parts of the business that has hit its cash and liquidity. In particular, the holiday sector in Egypt, Tunisia and Thailand have affected bookings. Trading Trading had suffered in France and Belgium, where bookings are down 20% compared with last year, and in Thomas Cook’s Russian business.
The fiscal result will be released “after it has concluded decisions with the lenders”, forcing a major drop in share price.
Thomas Cook states that customers holiday bookings are fully protected via the ATOL scheme meaning the company goes bust when holidaymakers are away – customers on package deals are flown home without incurring extra expense. Those who have not already left for their holiday are refunded. Holidays would also be allowed to be taken if there is a take-over.
Flight only/Hotel Only deals however are NOT covered by the ATOL scheme. As usual, I’d strongly recommend getting your own insurance rather than just hoping on ATOL.
Plans are afoot to close 200 of the Thomas Cook travel shops in the UK.
They operate a mixed fleet through their subsidiaries of Thomas Cook Airlines UK, Thomas Cook Scandinavia, Thomas Cook Belgium and Condor of Germany, with about 90 aircraft in their combined fleet. In addition they operate their tour businesses, travel agents and Bureau De Changes.