Thomas Cook hit by Egypt turmoil

Reporting figures for the seasonally quieter six months to March 31, the tour operator said the impact of Egypt's political turmoil on demand took £131 million off its half-year sales and £14 million from its profits.

However, the business said increased gains from its savings programme meant it still narrowed losses to £257.1 million, from £268.8 million a year ago.

In the UK, the company said its average prices were 3% lower than last year due to its changing mix of holidays and from selling a higher number of shorter breaks. However, the firm expects its UK business to improve average prices as it sells more exclusive hotel holidays.

Thomas Cook said UK sales were £44 million lower than 12 months ago due to over capacity to the Canary Islands as well as fewer travellers to Egypt.

The firm added it has so far sold 66% of its summer holidays in the UK market, which is the same as a year ago.

In its continental European market the firm said prices and bookings were both 1% up, driven by Germany where bookings have risen 4%.