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Thomas Cook posts huge NINE-FIGURE loss as fears grow for travel agent

The travel firm had issued a profits warning earlier this week. 

But fresh figures show a nine-figure loss after tax, down from a £9million profit last year. 

Net debt has also widened from £40million to £389million. 

The results come after following warnings that a sharp drop in profts was on the cards.

PLUNGE: Thomas Cook suffered losses of £163m last year (Pic: GETTY)

Earlier this week, Thomas Cook said a drop in earnings was down to additional charges including flight disruption and transformation costs.

But it also pointed the finger at this year’s summer heatwave which sparked a drop in demand for its tour holidays business.

As the company previously flagged in an unscheduled statement on Tuesday, underlying earnings were £58 million lower at £250 million in the year to September 30.

Revenue was up 6% on a like-for-like basis at £9.58 billion.

Net debt widened from £40 million to £389 million.

FALLING: The travel agent reported a loss of £163m – having made a profit last year (Pic: GETTY)

Shares in Thomas Cook were down 3.2% in early trading, but avoided a major drop, having already plummeted by as much as 30% on Tuesday.

David Madden, market analyst at CMC Markets UK, said the mood among traders was still nervous.

“The travel operator has been struggling in 2018, and things are getting worse as the year goes on. The group issued two profit warnings in two months, and that has sent investors running scared,” he said. 

“The industry as a whole has been under-performing. The extreme weather this year hurt the travel industry, as the ‘Beast from the East‘ and the heatwave was a double negative for the sector. Adding to that, industrial action and the rally in oil price over the summer made matters worse.”

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