Just as cheer emerged on tour operator Thomas Cook 's (TCG) return to the dividend roster late last year, this week's trading update has dampened spirits, sending the shares down 8 per cent
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Revenues edged up 1 per cent thanks to a successful capacity shift away from Turkey and Egypt to European destinations such as Greece and long-haul flights. But margins were flat, and although the booking pattern is solid from management's view, it hasn't inspired shareholders - winter is 1 per cent up with 82 per cent of capacity sold and summer is up 2 per cent with 31 per cent sold.
Exposure to the overserved German market through its Condor business remains an issue as overcapacity is hitting pricing.