Thomas Cook plunged 28% on the stock exchange after downing its annual forecasts for the second time

His financial director resigns who will leave the group in November

Shares of Thomas Cook have sunk by 28% on the London Stock Exchange after the British tour operator has cut its forecasts for its fiscal year, which ends on September 30, for the second time in just two months.

Thomas Cook expects to obtain a adjusted net profit of 280 million pounds sterling (312.2 million euros), up to 20% less than the highest range of his previous estimates.

At the end of July, Thomas Cook estimated that the adjusted profit for the year would be at a range of between 323 and 355 million pounds sterling (360 and 396 million euros).

The British tour operator, which registered a decrease of 3.2% in its turnover in the third quarter of its fiscal year, has acknowledged that the heat wave, especially in northern Europe, has impacted on its operations in a difficult environment marked by the excess of supply, which has caused the delay of the departures of tourists to other destinations.

After this announcement, the titles of Thomas Cook have yielded more than 22% in the opening of the market, after the tour operator reduced at least 13% its profit forecast for the year, and warned that the demand will continue to the low during the last quarter and could be extended to next year.

Thomas Cook has confirmed that he has sold 90% of his summer programming, in line with last year. The group’s total reserves have increased by 12% compared to last year due to the recovery of demand in destinations such as Turkey, Egypt, Tunisia and Greece.

The group has also announced the resignation of its chief financial officer, Bill Scott, who will step down on November 20 at the shareholders’ meeting following the presentation of the annual results. Scott, who joined Thomas Cook in July 2012, was named financial director of the group in January 2018.

Thomas Cook has appointed Sten Daugaard, from Lego, as the new financial director of the group on an interim basis. He will join in October and will perform the duties of financial director from next December 1. The company is already looking for a more long-term financial director.