Thomas Cook announces £1.45bn loss.

Thomas Cook announces £1.45bn loss.

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So

Original Poster:

15,519 posts

163 months

Thursday
quotequote all

Brexit being the problem, apparently, as customers defer holiday plans.


Shar2

2,074 posts

154 months

Thursday
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Nothing to do with the on going 737Max trouble then. Yep, let's blame everything on Brexit. How about just blaming the politicians for making a right royal cock up of it all.

So

Original Poster:

15,519 posts

163 months

Thursday
quotequote all
Shar2 said:
Nothing to do with the on going 737Max trouble then. Yep, let's blame everything on Brexit. How about just blaming the politicians for making a right royal cock up of it all.
There's an over capacity of flights isn't there? It's not as though they're struggling to fulfil the demand.


bobbo89

2,565 posts

86 months

Thursday
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BBC News said:
Some £1.1bn of the loss was caused by the decision to write-down the value of My Travel, the business it merged with in 2007.
Thomas Cook said:
Chief executive Peter Fankhauser said: “The first six months of this year have been characterised by an uncertain consumer environment across all our markets. The prolonged heatwave last summer and high prices in the Canaries reduced customer demand for winter sun, particularly in the Nordic region, while there is now little doubt that the Brexit process has led many UK customers to delay their holiday plans for this summer.

"Our loss from operations for the period was £1.4bn, which reflects a non-cash impairment of historic goodwill, largely related to the merger with MyTravel in 2007 which we have re-valued in light of the weak trading environment.
But lets blame Brexit first!

Edited by bobbo89 on Thursday 16th May 07:55

Eric Mc

106,052 posts

206 months

Thursday
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bobbo89 said:
But lets blame Brexit first!
Especially if it's the reason.

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bobbo89

2,565 posts

86 months

Thursday
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Eric Mc said:
Especially if it's the reason.
Sorry, missed part of my quotes. Corrected now

dazwalsh

4,293 posts

82 months

Thursday
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Whilst it may have had an effect i cant see how a billion+ loss can be aimed squarely at brexit. If there was a trend then perhaps, but how is Jet2 holidays doing for example?

dundarach

1,882 posts

169 months

Thursday
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dazwalsh said:
Whilst it may have had an effect i cant see how a billion+ loss can be aimed squarely at brexit. If there was a trend then perhaps, but how is Jet2 holidays doing for example?
Okay https://www.jet2.com/leading-leisure-travel-group

Eric Mc

106,052 posts

206 months

Thursday
quotequote all
dazwalsh said:
Whilst it may have had an effect i cant see how a billion+ loss can be aimed squarely at brexit. If there was a trend then perhaps, but how is Jet2 holidays doing for example?
I am sure it's not the main reason - but it is probably a significant factor. They are trying to sell off the airline segment. Thomas Cook airlines evolved out of Caledonian Airlines (which has been formed when Britiah Airways decided to rebrand its British Airtours subsidiary). It would be nice to see Caledonian or British Caledonian reborn.

So

Original Poster:

15,519 posts

163 months

Thursday
quotequote all
dundarach said:
dazwalsh said:
Whilst it may have had an effect i cant see how a billion+ loss can be aimed squarely at brexit. If there was a trend then perhaps, but how is Jet2 holidays doing for example?
Okay https://www.jet2.com/leading-leisure-travel-group
Do they serve a different demographic?

I usually associate Thomas Cook with budget holidays, whereas Jet 2 are slightly more expensive.


croyde

15,416 posts

171 months

Thursday
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Over a year ago, I did exclaim to our local carpet fitter that his prices seemed a bit high.

'Brexit mate!' was his answer.

I'll admit that I'm a remainer who is so sick of this slow plaster removal from a hairy leg of a process that I just want it done.

Companies left, right and centre are using Brexit as an excuse to do what they were going to do anyway but needed a scapegoat.

Type R Tom

2,502 posts

90 months

Thursday
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Can someone explain the maths to me? £1.45bn sounds like a lot of people not going on a say, £600 per head average holiday just because of brexit.

Eric Mc

106,052 posts

206 months

Thursday
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Did they say the losses were "just because of Brexit"?

Glasgowrob

2,327 posts

62 months

Thursday
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more like £300 million loss when you take out the writedown

coyft

5,014 posts

152 months

Thursday
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Eric Mc said:
dazwalsh said:
Whilst it may have had an effect i cant see how a billion+ loss can be aimed squarely at brexit. If there was a trend then perhaps, but how is Jet2 holidays doing for example?
I am sure it's not the main reason - but it is probably a significant factor. They are trying to sell off the airline segment. Thomas Cook airlines evolved out of Caledonian Airlines (which has been formed when Britiah Airways decided to rebrand its British Airtours subsidiary). It would be nice to see Caledonian or British Caledonian reborn.
Hardly a factor at all. Like for like losses are down £65m, that was against a strong 2018 period. 90% of the loss is an adjustment to goodwill as they vastly overpaid for MyTravel in 2007.

The CEO doesn't mention Brexit at all when commenting on the results. He says the summer heatwave contributed towards the losses as it dampened demand for winter sun.

Type R Tom

2,502 posts

90 months

Thursday
quotequote all
Eric Mc said:
Did they say the losses were "just because of Brexit"?
No but does anyone know anyone that has said they won't be having their week all inclusive in Ibiza because of Brexit? How many worried people in this country to we need to significantly effect profits?

Eric Mc

106,052 posts

206 months

Thursday
quotequote all
Type R Tom said:
Eric Mc said:
Did they say the losses were "just because of Brexit"?
No but does anyone know anyone that has said they won't be having their week all inclusive in Ibiza because of Brexit? How many worried people in this country to we need to significantly effect profits?
Quite a few holiday companies have said that Brexit is having a deterrent effect on Brits booking holidays in EU countries. Even last week there were reports on this. As a result, holiday bookings in non EU countries, such as Turkey, have increased - but not by enough to make up the shortfall.

I have had clients talk to me about uncertainty about renewing passports for instance, as it is not clear if and when the "new style" non-EU British passports will be available and people whose current UK passports are due for renewal over the next 12 months aren't sure what to do.

Diversion

10 posts

1 month

Thursday
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Why would Brexit stop people going on holiday?

We have a couple of European holidays booked for later this year just as we have for the past few years

Type R Tom

2,502 posts

90 months

Thursday
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Eric Mc said:
Type R Tom said:
Eric Mc said:
Did they say the losses were "just because of Brexit"?
No but does anyone know anyone that has said they won't be having their week all inclusive in Ibiza because of Brexit? How many worried people in this country to we need to significantly effect profits?
Quite a few holiday companies have said that Brexit is having a deterrent effect on Brits booking holidays in EU countries. Even last week there were reports on this. As a result, holiday bookings in non EU countries, such as Turkey, have increased - but not by enough to make up the shortfall.

I have had clients talk to me about uncertainty about renewing passports for instance, as it is not clear if and when the "new style" non-EU British passports will be available and people whose current UK passports are due for renewal over the next 12 months aren't sure what to do.
I'm off on holiday next week, was planning to go to Canaries but changed to Tunisia as it was good value, booked through onthebeach but flying with Thomas Cook. The only affect brexit had on me (it was annoying!) was the change to needing 6 months left to travel to Europe so I had to pay to get my new passport quickly, although once we settled on Tunisia I needed a new one anyway.

Point being, I worked around it and hasn't stopped me wanting a holiday and same for anyone I know. Worrying about stuff like that seems daft to me. By the way I got a red passport not a blue one!

croyde

15,416 posts

171 months

Thursday
quotequote all
Why would people be unsure about renewing passports?

Just shows how thick a lot of the population is. Renewed mine last week. Got it 5 days later including the weekend.

Yep! it's still the little red EU one not the big black cardboardy type one, but every page does have a very British picture on it.
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