Thomas Cook says profits could be hit by £25 million

<p>The travel company says recent events in Greece and Tunisia could cause the drop in profits.</p>

Recent events in Tunisia and Greece could have an impact on the travel market. 

Thomas Cook has recently announced that its full year profits will be hit by around £25. After last month's terrorist attack on a tourist beach in Tunisia, the travel firm said it saw a drop in bookings for the July-to-September quarter. The company also said that concerns over Greece's possible exit from the euro had led to a drop in trading.

In addition, the strength of the pound against the euro could also affect earnings, they said.

Tunisia

The tragedy in Tunisia – when 38 holidaymakers, 30 of them Britons, were killed by a gunman – was expected to cost the travel firm £20 million. This includes the costs of cancelled trips and repatriating customers to the UK. The firm also had to change routes to alternative destinations after the Foreign Office advised against all but essential travel to the north African country.

Thomas Cook chief executive Peter Fankhauser explained that since the end of the third quarter, the company had been "impacted by significant external shocks."

He noted that the company worked quickly following the events in Tunisia.

"In response to the tragic events in Tunisia, we acted swiftly and decisively, evacuating more than 15,000 guests on approximately 60 flights and sending special assistance teams to offer logistical and compassionate support to customers and staff," he said.

Greece

The economic turmoil in Greece has also had an effect on the holiday market.

"In Greece, our local teams have worked diligently to ensure that economic issues do not disrupt our custoemrs' holidays," Mr Fankhauser explained.

Overall, Thomas Cook has reported operating profits of £3 million for the April-to-June quarter. This is a sharp improvement compared to the £42 million loss a year earlier.

The company also noted that it expected full-year profits to grow, despite the impact of the events in Tunisia and Greece and once the impact of currency movements has been stripped out.

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