Thomas Cook shares tumble as United Kingdom profits drop 40 percent

Condor proved a bright spot for the company

"After four consecutive years of profit growth, margins in our United Kingdom business declined due to a more competitive market environment, especially for holidays to Spain", Fankhauser said.

The company also pointed to a surge in costs from fraudulent illness claims and a big bill supporting 10,000 customers caught up in Hurricane Irma, which devastated parts of the Caribbean and the U.S. state of Florida.

Shares in the group plunged as much as 13% at one stage after the results.

An improved performance in other markets meant that overall the companies full-year pre-tax profit rose by 35 percent to $61 million (£46 million).

Underlying earnings before interest and taxes slumped from $115 million (£87 million) to $69 million (£52 million) in the unit.

"My experience tells me that (the Spanish market) is balancing out", Chief Executive Peter Fankhauser told reporters on Wednesday.

"By delivering what we promised on strategy, we've inspired more customers to choose our holidays for their hard-earned weeks in the sun".

The group also said it is "well-positioned" to achieve current market expectations for its 2018 financial year.




(TCKGY.PK, TCG.L) were losing around 11 percent in the morning trading in London after the British tour operator reported Wednesday weak United Kingdom margins in its fiscal 2017, despite higher group profit and revenues.

Thomas Cook shares took a hit on Wednesday. Demand for holidays in both countries had fallen after terror attacks.

"As soon as Turkey, Egypt and the eastern Mediterranean destinations (have) increased demand, the Spanish hoteliers will see that they will have to adapt their prices to level it out".

Bookings in the United Kingdom are up 1%, with good growth to Turkey and Egypt, while prices are up 4% due to hotel price hikes in its biggest winter destination, the Canaries.

Thomas Cook added that summer programme ended in October with no significant changes to the trading environment.

Thomas Cook said its United Kingdom tour operating business "experienced challenging conditions" in the second half of the year, which resulted in a sharp drop in earnings for the division.

She said: "While those pressures had already been previously flagged by the company, it's disappointing there wasn't a greater positive offsetting effect on margins from strategic growth initiatives".

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