Travel firm Thomas Cook reported a rise in year profits today and raised its merger synergy targets, following rival TUI Travel in demonstrating some industry resilience in the consumer downturn.
Europe's second biggest travel firm said its underlying pretax profit increased by 32 per cent in the year to September 30th to £309.3 million ($459 million) as it benefited from increased revenue and an improved operating margin.
It also said current trading was in line with its expectations as were winter 2008/9 bookings, with prices well up in most categories.
The group, created last year from the tie-up of Arcandor's travel unit and Britain's MyTravel, also increased its merger synergy target to £215 million ($319 million) by 2010, from £155 million before.
It said the integration of the two businesses had been "highly successful" with management, commercial, and technology having been integrated into one platform for over a year.
For summer 2009, the group has sold 24 per cent of capacity in the UK so far, broadly in line with last year's level. The group said it is confident of prospects for 2008/9 and is targeting an operating profit of £480 million for 2009/10.
For the year just ended it said it would pay a final dividend of 6.5 pence per share, making a total payout for the year of 9.75 pence, up 95 per cent.
Reuters