LONDON (dpa-AFX) - Travel operator Thomas Cook Group Plc. (TCKGY.PK, TCG.L) Tuesday said it is trading in line with management's expectations, and that Summer 2015 trading is developing satisfactorily. According to the company, the Winter 2014/15 season is now almost fully sold, and Summer 2015 is more than 50 percent sold.
Peter Fankhauser, CEO, said, 'Our bookings for the full year are developing well, especially in the UK and Airlines Germany. The tough trading conditions we reported previously in some markets are showing early signs of improvement, and our New Product and Winter Sun initiatives are leading to growth.'
Across the group Winter is now 95 percent sold, 1 percent ahead of this time last year. Meanwhile, average selling prices are 2 percent lower due to product mix changes.
Thomas Cook said the UK business continues to trade ahead of last year, with bookings growth of 9 percent due to robust demand particularly for the Winter Sun holidays.
Trading in Continental Europe and Northern Europe is tough compared to last year's strong performance, but has improved since the first quarter.
Demand for holidays to the company's Concept Hotels is growing, and bookings climbed 20 percent from the prior year.
Bookings on thomascook.com climbed 10 percent, reflecting continued progress in digital initiatives.
In Airlines Germany, bookings increased 10 percent and load factors improved. But price pressure in the short and medium haul sector has led to an average selling price decline of 2 percent.
Summer 2015 is 54 percent sold for the Group, 2 percent higher than this time last year. Total bookings are 1 percent lower, with a similar decrease in average selling prices. UK bookings grew 4 percent, while average selling prices slipped 1 percent due to an increased proportion of seat only sales, reflecting capacity management plans and customer demand for more flexible product.
Looking ahead, Thomas Cook said even as conditions remain tough in many markets, trading in Continental Europe and Northern Europe is improving while the UK business continues to perform well. The company is confident that its strategy of profitable growth through new product and digital initiatives, supported by cost efficiencies, will lead to further improvements in business performance.
'We therefore continue to expect further growth in FY15, consistent with our expectations at our full year results in November, on a constant currency basis,' the tour operator said.
TCG.L closed up 1.9 percent on Monday at 143.10 pence.
Copyright RTT News/dpa-AFX