Operator returns to profit for first time in three years
Tour operator Thomas Cook returned to profit for the first time in three years this week, driven by an impressive turnaround plan.
After less than 18 months in the job, chief executive Harriet Green revealed operating profits of £13 million (€15.6 million) for the 12 months ending September 30, a big swing back to health from the £170 million loss posted last year.
Pretax profits at the world’s oldest travel agent, including exceptional items, were £158.1 million, up from a £336.8 million loss a year earlier. Sales were up 1.3% to £9.3 billion.
Green also unveiled more cost-cutting plans, adding that she aims to save £880 million over the coming five years. The group has already sold off several brands and shut many of its travel agency sites.
The operator says it aims to boost profits by increasing margins, raising direct online sales, offering more holidays in the company’s own “concept” hotels and cutting costs through centralised procurement.
[pictured: Harriet Green with Thomas Cook’s new “sunny” logo]