Thomas Cook loss doubles, sees no profit

Losses at troubled German travel firm Thomas Cook doubled in 2003, and the firm warned it would not make a profit this year despite…

Losses at troubled German travel firm Thomas Cook doubled in 2003, and the firm warned it would not make a profit this year despite a rise in bookings.

Europe's second-largest travel firm, jointly owned by airline Lufthansa and retailer KarstadtQuelle, said its net loss rose to €251 million in its business year to the end of October but again dismissed speculation that the group might be broken up.

Thomas Cook, whose former chief executive and finance boss resigned last November in the face of poor results, said that it would implement a tough cost-cutting programme and that its airline alone would have to save €100 million.

The  company also said that it planned to cut 10 per cent of its 5,500-strong German workforce as it bids to save a further €50 million in its home market.

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Revenues fell 10 per cent to €7.2 billion in its 2002/2003 business year but Thomas Cook said that bookings were up 3.7 per cent so far in the current year while sales had also shown growth - albeit at a lower rate.