Thomas Cook returns to black

Thomas Cook returns to black

Tour operator Thomas Cook has returned to profit in the third quarter, reporting earnings before interest and tax of £1 million.

It is the first time the group has reported a profit in the third quarter since its near bankruptcy in 2011.

In a statement to markets earlier the venerable organisation said it had turned the corner, with new chief executive Harriet Green promising “much more”.

Thomas Cook has recently undergone a process of restructuring that has seen it cut jobs, divest businesses, shut branches and merge its airline operations.

The company has also halved its debt pile in order to help it recover from slumping sales.

The brand had been hit by the euro zone debt crisis, high fuel costs and social and political turmoil in popular holiday destinations such as Greece and Tunisia.

Green pledged to boost profits by £330 by 2015.

The 172-year-old group was saved by an emergency bail-out from its lenders two years ago.

It is presently half way through a three year turnaround plan.