Thomas Cook shares plunge 20 per cent following last week’s £30m profit warning

Shares in airline and travel agent Thomas Cook have plummeted by more than 20 per cent following a period in which it downgraded its profit guidance twice in two months.

Shares were trading at 23.96p at the time of writing, following last week's £30m profit warning, which it blamed on the summer heatwave for hitting the package holiday provider’s main trading period.

The warning – the business's second in two months – came as the firm reported its tour operations arm was down £88m, impacted by discounts in the late purchase market.

It also announced an increased net debt of £389m due to delayed bookings and the suspension of its dividend.

The airline was the second top faller on the London Stock Exchange, after newsagent McColls.

At the time of the profit warning issuance last week, Thomas Cook chief executive Peter Fankhauser said 2018 was a "disappointing year" due to a "larger-than anticipated decline in gross margin following the prolonged period of hot weather in our key summer trading period".

Next year the brand has plans to set up at least 20 new hotels.