Volcano ash blows a hole in Thomas Cook's profits
ASH from the Icelandic volcano eruption will blow a £70million hole in Thomas Cook’s annual profits.
The tour operator said the hit taken from April’s six-day airspace shutdown included extra meals for stranded holidaymakers and cancelled holidays.
“It was a major disruption,” said chief executive Manny Fontenla-Novoa. However, customers were flowing back with holiday bookings from the UK up five per cent in the last four weeks.
He said: “It’s been a long winter and people need a break. They don’t want another wet summer.” Turkey is the most popular destination. Fontenla-Novoa said the coalition’s plan for a plane tax was “good news” for package operators with high loads. It reduced its first-half loss by 18 per cent to £252.2million.