Ash chaos costs Thomas Cook £70m

Tour operator Thomas Cook today said it had taken a £70 million hit from the travel chaos unleashed by Iceland's volcanic eruption in April.

The company is joining other travel firms and airlines in seeking compensation for the "unprecedented" disruption from the ash cloud, which closed most of European air space for five days. TUI Travel and budget airline easyJet have already revealed combined costs of £160 million this week.



Thomas Cook added: "The group is working with the Government and relevant national and international bodies to put in place measures to ensure such a blanket ban is not needlessly imposed again."







Despite the temporary impact of the volcano on bookings, chief executive Manny Fontenla-Novoa said he was "pleased" with summer bookings so far with holidaymakers proving reluctant to give up their summer break.



The tour operator said UK summer holiday sales were showing "significant improvement", with bookings up 5% in the last four weeks and ahead of planned capacity.



Average selling prices have jumped 11% above last year in recent weeks and the firm expects prices to trend higher still as Thomas Cook gives away fewer holidays in the discounted "lates" market.



The tour operator - which has cut capacity to meet lower demand for holidays during the downturn - said underlying revenues were down 7% to £3.3 billion in the seasonally weaker six months to March 31.



The group's operating losses rose £17 million to £130 million due to capacity cuts as well as the impact of the weaker pound on flying and accommodation costs, although Thomas Cook partially offset this through measures such as driving better deals with suppliers.



Panmure Gordon analyst Simon French welcomed a £1.05 billion refinancing by the company but said its decision to hold dividend payments could disappoint investors.



He added: "Summer season sales are progressing in line with expectations although the group is achieving lower average selling price increases than TUI Travel."

Suggested Topics
Life and Style
A monstrous idea? Body transplants might no longer be science fiction
Science An Italian neurosurgeon believes so - and it's not quite as implausible as it sounds, says Steve Connor
Sport
Demba Ba (right) celebrates after Besiktas win on penalties
footballThere was no happy return to the Ataturk Stadium, where the Reds famously won Champions League
Arts and Entertainment
Natural beauty: Aidan Turner stars in the new series of Poldark
arts + ents
News
Mia Freedman, editorial director of the Mamamia website, reads out a tweet she was sent.
arts + ents
Have you tried new the Independent Digital Edition apps?
News
people
Arts and Entertainment
The write stuff: masters of story-telling James Joyce, left, and Thomas Hardy
arts + ents...begging to differ, John Walsh can't even begin to number the ways
News
Image from a flyer at the CPAC event where Nigel Farage will be speaking
news
Travel
ebookHow to enjoy the perfect short break in 20 great cities
Independent Travel Videos
Independent Travel Videos
Simon Calder in Amsterdam
Independent Travel Videos
Simon Calder in Giverny
Independent Travel Videos
Simon Calder in St John's
Independent Travel Videos
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Travel

    Recruitment Genius: Cleaning Manager - York and Bradford

    £26000 per annum: Recruitment Genius: The post holder is a key member of the V...

    Recruitment Genius: Vehicle Breakdown Recovery Drivers

    £18000 - £28800 per annum: Recruitment Genius: Vehicle Breakdown Recovery Driv...

    Recruitment Genius: Processing Partner

    £15000 - £19200 per annum: Recruitment Genius: A Processing Partner is require...

    Recruitment Genius: PPC Manager - SW London

    £34000 - £37000 per annum: Recruitment Genius: This specialist travel agent ba...

    Day In a Page

    HIV pill: Scientists hail discovery of 'game-changer' that cuts the risk of infection among gay men by 86%

    Scientists hail daily pill that protects against HIV infection

    Breakthrough in battle against global scourge – but will the NHS pay for it?
    How we must adjust our lifestyles to nature: Welcome to the 'Anthropocene', the human epoch

    Time to play God

    Welcome to the 'Anthropocene', the human epoch where we may need to redefine nature itself
    MacGyver returns, but with a difference: Handyman hero of classic 1980s TV series to be recast as a woman

    MacGyver returns, but with a difference

    Handyman hero of classic 1980s TV series to be recast as a woman
    Tunnel renaissance: Why cities are hiding roads down in the ground

    Tunnel renaissance

    Why cities are hiding roads underground
    'Backstreet Boys - Show 'Em What You're Made Of': An affectionate look at five middle-aged men

    Boys to men

    The Backstreet Boys might be middle-aged, married and have dodgy knees, but a heartfelt documentary reveals they’re not going gently into pop’s good night
    Crufts 2015: Should foreign dogs be allowed to compete?

    Crufts 2015

    Should foreign dogs be allowed to compete?
    10 best projectors

    How to make your home cinema more cinematic: 10 best projectors

    Want to recreate the big-screen experience in your sitting room? IndyBest sizes up gadgets to form your film-watching
    Manchester City 1 Barcelona 2 player ratings: Luis Suarez? Lionel Messi? Joe Hart? Who was the star man?

    Manchester City vs Barcelona player ratings

    Luis Suarez? Lionel Messi? Joe Hart? Who was the star man at the Etihad?
    Arsenal vs Monaco: Monaco - the making of Gunners' manager Arsene Wenger

    Monaco: the making of Wenger

    Jack Pitt-Brooke speaks to former players and learns the Frenchman’s man-management has always been one of his best skills
    Cricket World Cup 2015: Chris Gayle - the West Indies' enigma lives up to his reputation

    Chris Gayle: The West Indies' enigma

    Some said the game's eternal rebel was washed up. As ever, he proved he writes the scripts by producing a blistering World Cup innings
    In Ukraine a dark world of hybrid warfare and murky loyalties prevails

    In Ukraine a dark world of hybrid warfare

    This war in the shadows has been going on since the fall of Mr Yanukovych
    'Birdman' and 'Bullets Over Broadway': Homage or plagiarism?

    Homage or plagiarism?

    'Birdman' shares much DNA with Woody Allen's 'Bullets Over Broadway'
    Broadchurch ends as damp squib not even David Tennant can revive

    A damp squib not even David Tennant can revive

    Broadchurch, Series 2 finale, review
    A Koi carp breeding pond, wall-mounted iPads and a bathroom with a 'wellness' shower: inside the mansion of Germany's 'Bishop of Bling'

    Inside the mansion of Germany's 'Bishop of Bling'

    A Koi carp breeding pond, wall-mounted iPads and a bathroom with a 'wellness' shower