Travel operator Thomas Cook saw trading negatively affected by a “difficult year” for the tourism industry, will full year pre-tax profits dropping to £42 million.
The travel industry has had to contend with terror attacks in Europe, air traffic control strikes and political instability in Turkey affecting demand for one of the sector’s most popular destinations.
Revenue at Thomas Cook dropped to £7.81 billion over the past 12 months, from £7.83 billion in the previous period. Profit from operations fell to £205 million from £211 million, with profit after tax dropping to £9 million from £19 million.
Underlying profits fell by £41 million to £308 million. However, the board recommended its first dividend payment in five years, providing encouragement for investors.
Chief executive Peter Fankhauser told the BBC the group was “pleased with what [they had] achieved”, but were “cautious” going into the year ahead.
In a statement, Fankhauser said: “In what’s been a difficult year for tourism, I’m pleased with the progress that we’ve made at Thomas Cook.”
“The early actions we took to shift our holiday programme into the Western Mediterranean and long haul, together with the benefits of a stronger euro, helped us to maintain revenue at group level. Additionally, a focus on holidays to our own-brand and partner hotels delivered record profit margins in our UK and Northern European businesses.
“Meanwhile, we’ve made big strides towards our target to put the customer back at the heart of the business. Our strategy is clear: to deliver sustainable growth by giving our customers great holidays which inspire them to come back to Thomas Cook and recommend us to their family and friends. This renewed focus on quality and service delivered a six-point increase in customer satisfaction in summer 2016 telling us that the changes we’re making are having an impact where it matters most.”
Thomas Cook (LON:TCG) shares plunged at open but have since recovered, currently trading up 7.68 percent at 79.05 pence per share (0832GMT).