Cook said in its financial results statement for the six months to March 31 that it was continuing to experience margin pressure in the UK tour operator “due to a combination of hotel cost inflation in Spain, currency impact and capacity increases in the market”.
“We have taken action to help mitigate this pressure, including taking out holiday capacity from Spain and moving it to the eastern Mediterranean,” said Peter Fankhauser, chief executive of Thomas Cook Group.
The operator is seeing significant growth to Turkey and North Africa, which it said was helping to mitigate UK margin pressure.
