A branch of travel agents Thomas Cook is pictured in central London, on December 02, 2008.Shaun Curry/AFP/Getty Images
Thomas Cook Group Ltd., Europe's second-biggest travel company, said full-year profit would be lower than expected due to unrest in the Middle East and North Africa and tough trading conditions in Britain.
Thomas Cook shares were down 24 per cent in early trading on Tuesday.
The company said the MENA impact had been higher than previously anticipated, with its French business seeing reduced demand and lower margins during the peak season for key destinations in Egypt, Morocco and Tunisia.
It also said the profitability of its British business had continued to be hit by difficult trading conditions, mainly as a result of the squeeze on disposable income.
Thomas Cook said it had begun a fundamental strategic and operational review of its British business.
The company said it expected a full-year operating profit of £320-million, down from £362-million in 2009-10.
Market expectations for full year EBIT (earnings before interest and taxation) were in a £339-million to £440-million range, with the average forecast at £415-million, according to a Thomson Reuters I/B/E/S poll.
In May, rival TUI Travel said it was on track to meet full-year expectations as increased demand for alternative destinations offset the impact of unrest in Egypt and Tunisia.