The Thomas Cook Group has reported a pre-tax loss of £96m for the second quarter ended 30 June 2012, compared to £56.7m for the same period last year.
Revenue declined by 6 per cent to £2.3bn (2011: £2.44bn) with the impact of planned capacity reductions offsetting additional revenue from acquisitions.
Gross profit was £ 461.8m (2011: £497.1m), while operating expenses were £488.3m (2011: £477m).
Net debt was £1.09bn (2011: £902.5m). The group generated £164.8m through disposals during the quarter. Underlying operating loss for the quarter was £26.5m (2011: profit of £20.1m).
Although the group’s overall UK bookings remained stable, trading across western Europe continued to be challenging, particularly in France, while German business performed well.
Harriet Green, chief executive of Thomas Cook Group, said:
My initial focus is to review our businesses, quickly establish priorities and develop a clear plan to reinvigorate Thomas Cook, which I expect to be able to present to you next spring. The group has been through a difficult period but much has been achieved which has strengthened the balance sheet and improved liquidity. The strength of the group’s brands and the quality of its businesses and people provides a foundation from which to bring the business back to full strength.
She added: "All roads ultimately lead to technology." The group expects the variance to narrow in the fourth quarter to deliver a full-year result broadly in line with expectations.