Despite the Thomas Cook seeing its revenues increase 1% to £1.66 billion in Q1 2019, the company also saw an increase in its operating losses by £14 million to £60 million, with the prolonged summer heat wave and high prices in the Canaries hurting customer demand for winter sun. For this summer, tour operator bookings are down 12 per cent although pricing was slightly higher.
On Wednesday evening, TUI warned on profits, blaming overcapacity and the impact of a weaker pound on the purchasing power of United Kingdom holidaymakers.
Thomas Cook said strong bookings for Turkey and North African holidays offset the poor performance for Spanish trips in the period.
Bookings for holidays this winter are up 8%, supported by an 8% rise in the airline business after adding more aircraft last spring.More news: VP Mohadi Now President As Mnangagwa In Ethiopia For AU Summit
Its airline, which fared much better past year than the tour operator business, consists of Germany's Condor, and British, Scandinavian and Spanish divisions.
The move comes amid continuing uncertainty how Brexit will affect the rights of UK-owned airlines to fly in Europe and follows long-standing speculation about the future of the group's airline business.
The firm said profits for the year to 30 September will be about €1.17bn, similar to last year.
Airline bookings for summer are also below past year after cutting the number of flights to short and medium-haul destinations by taking in less wet-lease capacity. THOMAS COOK GRP/ADR presently has an average rating of "Hold" and a consensus price target of $3.75.More news: Regional unemployment rate rose nearly one percent between December and January
If it wants to upgrade its hotels, it "explains the rationale" of potentially selling the airline business, he said.
"As a result, we are today announcing a strategic review of our Group Airline".
Tui has shocked investors with a profit downgrade and Thomas Cook has put its airline up for sale, underlining the pressures being felt by travel operators this year.
The company said it was at "an early stage" of the strategic review process, which consider all options to enhance value to shareholders and intensify its strategic focus. "We will provide an update on this process in due course".More news: Android Users Exposed to Remote Hack via PNG File
The Thomas Cook Group, which a fleet of 103 jets operating in the UK, Scandinavia and Germany, has said it is looking for "greater financial flexibility and increased resources" for future investment into the hotel arm of its business. UBS Group reissued a neutral rating and issued a GBX 34 ($0.44) target price (down previously from GBX 60 ($0.78)) on shares of Thomas Cook Group in a report on Tuesday, December 11th.