Thomas Cook shares dive after profit warning

Thomas Cook’s has issued a profit warning for its third quarter as the unrest in the Middle East and belt tightening in the UK too its toll.

Its shares dived by 28 per cent after the announcement.

The travel operator said is French business had been hit by unrest in Egypt, Tunisia and Morocco.

Operating profit for the three months to 30 June is likely to come in at about £20m, about £5m lower than the same period the previous year.

The company said: “This would leave us circa £40m behind our cumulative prior year result as we enter the last quarter of our financial year and below the guidance given at the time of the interim results in May."

Thomas Cook is to begin a strategic and operational review of the business.

The Central Europe, Northern Europe and Airlines Germany businesses continue to perform well, the company said.