Thomas Cook still struggling with debt and losses

Published:  2 Jun at 9 AM

Thomas Cook has witnessed its half-year losses rise sharply after some tumultuous six months, but is planning to take "decisive action" to fix its position. The travel group announced £713 million worth of pre-tax losses for the half year leading up to 31 March, a jump from last year’s £269 million loss.

The firm has struggled with skyrocket debt levels and the general malaise in the global travel industry. Earlier in May, Thomas Cook signed a £1.4 billion refinancing aid scheme.

The deal provides the company another three years to pay back its debts. Thomas Cook also received shareholder approval earlier in the week to auction off its investments with a Spanish hotel firm. It also secured backing for the leaseback and sale of some of its airplanes.
The firm said last Thursday that these moves added £239 million to its finances. The company also agreed to auction off its Indian firm for £94 million.

One reason for the huge increase in losses was a charge of £300 million after the firm was compelled to lower the value of segments of its firm. When this is pulled out, the company’s underlying pre-tax deficit for the six months leading to 31 March was £328 million, compared to £269 million one year earlier.