The Thomas Cook travel company has fallen considerably at the London Stock Exchange. This happened because analysts have openly expressed their doubts about the financial health of the company. An analyst even wondered if Thomas Cook is still able to make a real profit and prevent the company from being crushed under a pile of debt.
In just a few days, Thomas Cook’s market value has more than halved. Last week the company came out with disappointing results. This was followed by, among other things, a write-down by Citigroup. The market researcher advised investors to sell their shares and reduced the so-called price target to zero.
Thomas Cook announced earlier that he wants to sell his aviation activities. Several bids have already been received for this. With the proceeds, the company could reduce its debts and invest in the branch that offers vacations. The fact that things are going less well now is partly due to the fact that many British customers postpone their summer holiday plans due to the Brexit process. Higher fuel costs and slowing economic growth are also creating headwinds.