Thomas Cook hit by sales slowdown in Europe
Europe's uncertain economic prospects have cast a cloud over Thomas Cook's recovery after a slowdown in bookings in Germany.
The group said its turnaround progress remained on track but shares in the FTSE 250 Index company were down by 5% after the German guidance.
It said bookings in the country had been strong but recently moderated as a result of faltering consumer confidence due to geopolitical events as the EU considers adopting further sanctions against Russia.
Thomas Cook said: "As a consequence, our German business has experienced weaker margins in the fourth quarter of the year due to a combination of reduced demand and excess market capacity."
Overall, the company said it was on track for a ninth consecutive quarter of increased profitability in the final three months of the financial year to September 30. Thomas Cook, led by chief executive Harriet Green, is halfway through a long-term plan to drive savings and return the group to profit.