Thomas Cook shares at two-month high after winter bookings rise
LONDON (Reuters) - Holiday firm Thomas Cook has said booking volumes and prices for the coming winter were ahead of last year, sending its shares to their highest in nearly two months.
The company is forecasting growth on a constant-currency basis for the 12 months ending Sept. 30, despite a previously announced 25 million pound ($38 million) hit to operating profit from canceled holidays to Tunisia in the aftermath of the beach massacre there in June.
Demand for holidays in its fourth quarter had been helped by poor weather in Scandinavia, Thomas Cook said on Thursday , adding that since July there had been a significant increase in the number of customers picking Greece and Egypt as destinations.
Shares in the company, which had lost about 17 percent of their value over the last three months, rose 4 percent to 120.5 pence in early trading, hitting their highest since July 31.
"Today's in-line ... update is welcome given recent share price volatility," Jefferies analysts said in a note.
TUI Group , Thomas Cook's larger rival, had said on Wednesday that it had seen robust trading over the summer and bookings for the winter season were developing in line with its expectations.
Thomas Cook is due to report its annual results on Nov. 25.
(Reporting by Sarah Young; Editing by Paul Sandle and David Holmes)
