Business

Thomas Cook shares stabilise after Tuesday's plunge

  • 23 November 2011
  • From the section Business

Shares in travel firm Thomas Cook have recovered slightly from Tuesday's sharp fall, closing at more than 11p.

On Tuesday, the company's shares fell from 41p to close at 10.2p after it said it was in talks with banks about increasing borrowings.

It has delayed releasing full year results until talks are finished.

Thomas Cook had also warned that trading had "deteriorated", due to political unrest in Egypt and Tunisia and floods in Thailand.

Customers have been told their bookings are fully protected.

Improving 'resilience'

Last month, Thomas Cook announced it had arranged a new £100m credit agreement with its bankers.

The company is trying to negotiate about another £100m credit.

It is reported to be planning to close 200 of its 1,200 High Street travel agencies and bureaux de change.

Anyone booked for a package holiday with Thomas Cook is covered under the Air Travel Organisers' Licensing (Atol) scheme, which is funded by contributions from travel companies.

People who have only booked a flight with the company will be covered by the Atol scheme if they bought their tickets in a Thomas Cook shop.

However, they will not be covered if they bought plane tickets through the website and are advised to buy suitable travel insurance.

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