Travel agent Thomas Cook has seen EBIT increase by 39 per cent in the 12 months to March 31st, but registered a loss of £274 million for the period as trouble in Egypt hit sales.

However, losses were £77 million less than for the previous year.

The six months up to the end of March saw Thomas Cook’s underlying EBIT at a £187 million loss, improved by £30 million from the same period the year prior.

Thomas Cook Group chief executive Harriet Green said the company would continue to work through its waves of cost out and profit improvement initiatives, which are currently ahead of the initial target.

She explained: “We believe that these, in addition to over £1.2 billion in targeted incremental new product revenue in 2017, will transform our profitability and generate superior returns for our shareholders.”

During the half year the group’s online bookings increased almost 39 per cent with web revenues making up £3 billion of revenue.

Continued trouble in Egypt was attributed to the group’s £60 million drop in revenues to £9.1bn for the 12-month period.