Brexit hits holiday lates market and airlines

Expert: “Any hopes of a good lates market have evaporated”
Thomas Cook is likely to give another profit warning this week, as travel industry experts warn that “any hopes of a good lates market had evaporated” in the Brexit-hit UK.
Wyn Ellis from the broker Numis has told clients there is a “significant risk” the tour operator giant will give another warning about its profits when it reports its third-quarter results on Thursday.
The operator had already said in May that it expected to generate pre-tax earnings far lower than an earlier estimate.
“We are cautious about underlying trading trends and believe any hopes of a good lates market have evaporated,” Ellis said in a note to investors. The net result could be that Cook will discount “committed stock at unattractive prices” in the lates market.
It follows weeks of uncertainty for the travel industry, caused by Brexit, terror attacks throughout Europe and the failed coup in Turkey.
Last week Lufthansa sounded a profit warning and IAG is expected to deliver a gloomy forecast when it posts its results this week. Ryanair’s results yesterday were slightly more positive, its operating profit up 6%, but it confirmed it would pivot future growth away from the UK to EU airports over the next two years.
TTG Digital

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