Thomas Cook looking for a wonderful pick-up

The UK’s second biggest travel company, which was forced to turn to its banks for more help following dire trading last November, said summer bookings are two per cent lower than this time last year, compared to a one per cent decline reported in February.

But chief executive Sam Weihagen insisted bookings were “stable” and had improved in recent weeks following the launch of a TV advert featuring Louis Armstrong’s Wonderful World.

The group, which has 1,300 shops and reported losses of £151.7m in its first quarter, wants to sell £200m of assets over the next 18 months as part of plans to take a chunk out of its near £1bn debt mountain.

Thomas Cook shares were nearly five per cent higher after yesterday’s update but the share price is still nearly 90 per cent lower than a year ago.

The group said winter bookings were four per cent lower than a year ago, with the season closing next month, which is stable when compared to the figures published in February. The UK winter programme is 91 per cent booked, which is broadly in line with last year, Thomas Cook said, while its specialist holidays are one per cent higher.

The decline in summer bookings is driven by its mainstream products.