Europe's second-biggest travel firm Thomas Cook has said its full year profit will be lower than expected due to a worse than anticipated impact from disruption in the Middle East and difficult trading conditions in Britain.
Thomas Cook said it expected to make a full year operating profit of £320m, down from £362.2m the previous year
The company said its profit margins in the UK were being hit as it kept its prices competitive to attract cautious consumers, despite rising oil costs which are making it more expensive to fly.
The turmoil in North Africa and the Middle East had also impacted bookings to popular tourist destinations in the region such as Tunisia, Egypt and Morocco.
For the first three quarters of its financial year, operating profits are about £40m lower than a year ago. It now expects full-year profits of around £320m whereas previously analysts had expected a figure in the region of £380m.
Average UK selling prices for the summer are up just 4% as customers opt for better value all-inclusive deals, such as packages that provide food.
