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Thomas Cook Affirms Forecast, Sees Cost Savings

Travel company Thomas Cook said on Friday it was on track to hit year forecasts, while cost savings from its recent merger were expected to be higher than the 140 million euros ($190.6 million) originally seen.

Thomas Cook, Europe's second-largest travel firm, created from the tie-up of KarstadtQuelle's travel unit and Britain's MyTravel, said UK holiday bookings had been weaker than it had hoped, but Northern Europe and Airlines Germany would exceed its expectations.

It said increased fuel costs and air travel taxes on holidaymakers had hamstrung its ability to raise prices in the UK, and trading conditions in its largest market, Germany, remained challenging.

Thomas Cook confirmed analysts' suspicions that its original cost saving estimates from the merger may have been too conservative.

"The program to integrate the former Thomas Cook and MyTravel businesses has continued to make excellent progress," Thomas Cook said.

"We are increasingly confident that the synergies achieved will exceed the 140 million euros predicted."