Thomas Cook eyes £350m profit lift

City A.M. Reporter

HOLIDAY company Thomas Cook this morning said it would improve its profits to the tune of £350m, as it said its turnaround plan was on track.

The company, which shaved £60m of costs last year, said today it had found another £50m of cost savings.

It now expects its earnings before interest and tax (EBIT) margin to be in excess of five per cent by 2015.

Last week, Thomas Cook announced plans to cut 2,500 UK jobs across its back office and retail network in an attempt to restructure its business.

The company said it would focus on driving more online sales to help it catch up rivals such as TUI Travel, that have a much larger online presence. The company has created a digital advisory board, involving independent experts, to help it ramp up its online offering.