Thomas Cook ramps up targets as overhaul yields leap in profit

Tour operator now aims to cut costs by £440 million by 2015

Thomas Cook chief executive Harriet Green who took over 16 months ago
Thomas Cook chief executive Harriet Green who took over 16 months ago

Thomas Cook raised its revenue and cost-cutting targets in the latest stage of a profit-boosting turnaround at the world's oldest travel firm.

The tour operator is recovering from a dramatic slump over the past three years. Since travel industry outsider Harriet Green took over as chief executive 16 months ago, it has achieved a steady improvement in its finances through job cuts, store closures and disposals to reduce debt.

The company posted earnings before interest and tax up a forecast-beating 49 per cent to £263 million in the year to September 30th, helped by strong demand for holidays to Spain, the Canary Islands and Turkey.

Thomas Cook now aims to cut costs by £440 million by 2015. It also raised its target for revenue from new products by 40 per cent to £700 million by 2015. – (Reuters)