Beleaguered holiday firm Thomas Cook - heavily criticised following the deaths of two children from Wakefield on a holiday in Corfu - has posted its first annual bottom line profit for five years.
This is despite a £130 million sales hit from the Tunisian beach and hotel terrorist attacks in June.
The group said it had been a year of "considerable challenges" after coming under fire for its handling of the deaths of Bobby and Christ Shepherd. They died after being overcome from fumes from a faulty boiler at their holiday home on Corfu.
Chief executive Peter Fankhauser said the group had "confronted its mistakes" following the deaths of the children.
Thomas Cook posted profits after tax of £19 million - its first positive profit after tax since 2010 - while underlying earnings rose 11% to £310 million. But it said the suspension of holidays to Tunisia cost the group £130 million in sales, with underlying earnings impacted by around £22 million.
The group said the new financial year had got off to a good start despite cancelling its flights to Sharm-El-Sheikh in Egypt after the downing of a Russian passenger plane last month, while Tunisia holidays also remain suspended for most markets.
Thomas Cook has entered a 90-consultation with some of its UK employees on a three-year programme to "transform its operations".
The consultation will consider plans to:
- Close 195 high street stores, whilst retaining 874 outlets on British high streets
- Place a number of administrative and managerial roles at risk, at Head Offices in Peterborough and Preston, whilst proposing the closure of its Accrington office
- Change some terms and conditions in order to make further efficiencies, thereby safeguarding additional roles
- Thomas Cook currently employees 15,500 people in the UK and it is anticipated that approximately 2,500 full-time roles will go if the proposed changes go ahead.
Bradford Council is seeking urgent talks with travel giants Thomas Cook in the hope of salvaging something from the shock announcement that the company plans to shut its city centre offices with the loss of hundreds of jobs. Chris Kiddey reports.
Travel expert Sandra Murray has been reacting to the news of job losses.
Speaking to Calendar within the last few minutes, Yorkshire travel writer David Hoyle has been reacting to the news of job losses at Thomas Cook in Bradford.
Hundreds of jobs at Thomas Cook in Bradford are to be lost after the travel company announced it is closing its call centre in the city by March next year.
537 people work at the Godwin Street site. 69 positions are going to be created in Birkenshaw, but that will leave 468 redundancies. A further 244 positions will be created at other sites around the country, which those affected can apply for.