U.K. tour operator Thomas Cook has reported a 5 percent drop in overall summer bookings due to terrorist attacks in Brussels and weak demand for holidays in Turkey as the country is rocked by terrorist attacks and a failed political coup.
Group revenue in the third quarter was £1,85 billion ($2.4 billion), down 8 percent from the previous quarter, "reflecting (the) impact of Turkey and Brussels," the travel company said as it reported an underlying operating profit of £2 million in the third quarter, £22 million lower than last year.
It said summer 2016 bookings to destinations excluding Turkey were up by 8 percent. Overall, however, bookings were down 5 percent because of "continued weak demand for Turkey."
Michael Healy, chief financial officer at Thomas Cook, told CNBC that "no one will be surprised that the results are down."
"We've seen revenues down 8 percent and half of that relates to Turkey and the other half relates to Belgium and the Brussels airport attack. I do think we need to look at the results in a bigger context. We are a business that does have to manage through disruption and we took steps last year to rebalance our holiday program out of the eastern Mediterranean – Turkey, Tunisia and Egypt – and into the western Mediterranean," he said Thursday.
The company's shares opened up over 7 percent in Thursday trading.