Turbulence Subsiding at Thomas Cook

Before you go, we thought you'd like these...
Before you go close icon

LONDON -- Thomas Cook (ISE: TCG.L) , the beleaguered holiday getaway operator, announced that its recovery program was going to plan and that the company expects year-end numbers to meet expectations. With a brand-new CEO and CFO, Thomas Cook is looking to escape the drama of the past 18 months.

Despite consumers being under pressure, it appears many were disheartened by the gloomy weather that dominated the summer in Northern Europe and decided to set out for some sunshine on foreign soil. While total capacity available was reduced as Thomas Cook sells off assets to pay down its 1 billion pound net debt position, bookings were better than expected in several markets, including the U.K. and Western Europe.

These are positive developments for Thomas Cook, but there can be little doubt that the headlines surrounding the company's troubles scared some potential customers into the arms of competitor TUI Travel (ISE: TT.L) , which yesterday reported higher bookings and margins as well as strong bookings for next summer's getaways in the U.K.


For investors looking for exposure to the travel sector, TUI may be a better bet; an improving consumer environment should lift both companies, but TUI will pay you a 4.8% dividend while we wait for those sunny days.

If you are seeking other high-dividend possibilities, The Motley Fool has produced a special free report that reveals the favorite income stocks held by Neil Woodford -- the City fund manager who has thrashed the FTSE 100 by favoring dividend-paying blue chips. Just click to download the exclusive Neil Woodford report today -- but hurry, as this report will remain free for a limited time only.

Investing is by no means easy in today's uncertain economy. That's why we've published "Top Sectors for 2012" -- our guide to three favorable industries. This free report will be dispatched immediately to your inbox.

Further Motley Fool investment opportunities:

The article Turbulence Subsiding at Thomas Cook originally appeared on Fool.com.

Nate does not own any shares discussed above. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners