Thomas Cook shares plunge on profit warning

Thomas Cook Group

Last Updated at 20 Sep 2017, 15:30 GMT *Chart shows local time Thomas Cook Group intraday chart
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Shares in Thomas Cook have fallen 28% in London trading.

It comes after the travel company issued a warning that profits would be hit by unrest in the Middle East and North Africa, and by weak UK spending.

Europe's second-largest travel firm said continuing political unrest had affected bookings to destinations such as Tunisia, Egypt and Morocco.

It also said the profitability of its UK business had been hit by the "squeeze" on consumer spending.

It now expects annual operating profits of £320m, against forecasts of £380m.

It said the Arab Spring had caused more disruption to business than previously expected, and had been particularly painful for bookings by French customers.

Meanwhile, the firm said that it had asked management of its UK business to begin "a fundamental strategic and operational review" in light of poor trading.

Shares in the firm fell 34.85 pence to close at 87.85p.

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