Tour operator Thomas cook has reported positive summer trading despite last-minute bookings and taking a £20 million hit from the outbreak of the swine flu pandemic.

The group said that although UK bookings were down 11 percent, average selling prices were up by 8 percent, with many last minute bookings due to Britain’s recent wet weather.

However, it follows TUI Travels grim forecast of the upcoming winter season, with UK bookings down by 13 percent to the same time last year, with key markets flat or ahead of last years bookings in line with capacity cuts.

The group is uncertain how next summer will be, they will continue to anticipate further growth in profits and margins next year, and has abandoned the operating profit target of £480 million.

Thomas Cook’s chief executive, Manny Fontenla-Novoa, said the world had become “a very different place” since he made that forecast, adding: “We’re confident we’ll hit £480 million but not next year.”

He went on to play down suggestions that the group may cut capacity again next summer, insisting that predictions were based on unemployment reaching 3 million.

Mr Fontenla-Novoa claimed the swine flu impact was “more significant than we anticipated”, forecasting a yearly profit hit from the pandemic of more than £20 million, partly due to negative publicity in Germany over the recent outbreak in Majorca.

He added that Thomas Cook continued to seek further acquisitions, and was in talks over opportunities in Russia and China.

Thanks to timesonline.co.uk for the above quotes.  For more information please visit their website.