THOMAS SHOOK

Thomas Cook ‘is not going bust’ and ‘holidays are safe’ insist bosses as shares rise from 10p low

THOMAS Cook's share price rose this morning from a 10p low as staff continue to insist that the travel firm "isn't going to go bust".

Share prices in the troubled travel agent rose by 17 per cent in the early hours of today to 11.9p.

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Thomas Cook share prices rose in the early hours of this morningCredit: Getty - Contributor

The firm's future was thrown up in the air after it revealed a £1.5billion loss in the first half of the year caused by huge debts.

Shares plummeted by 40 per cent from 11.7p on Friday following the announcement, and fell another 17 per cent yesterday.

But despite its share price moving upwards, it's still not enough to help recover from last week's slump.

Staff at Britain's oldest travel agent have been defending the future of the business and reassuring panicked customers who fear the firm may fall into administration affecting their holiday.

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Worried customers fear the firm will go bust jeopardising their holidayCredit: Twitter
Thomas Cook staff have been defending the company on TwitterCredit: Twitter

"Despite the recent media speculation it's business as usual here," a Thomas Cook employee replied to a customer on Twitter.

"Customers can continue to book their flight with confidence," he added.

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Another comment from staff read: "We are not going bust, we are not going into administration and you will not lose your holiday."

The travel firm, which served 22million customers last year, is looking to sell the airline side of the business in a bid to plug its £1.25billion debts.

Top boss Peter Frankhauser told The Independent yesterday that the company has "ample resources" to get through this difficult time.

How do I know if my holiday is ATOL protected?

WHEN you book a holiday, the ATOL holder or their agent must give you a certificate confirming you are ATOL protected as soon as you hand over any money - including a deposit - for a holiday or flight.

Customers who booked holidays through companies including Thomas Cook that are protected by the Air Travel Organisers' Licensing scheme - or ATOL - will be able to get a refund if it collapses.

When booking a holiday, make sure you obtain and keep all the relevant paperwork in case you need to make a claim.

But be aware, the protection only covers British-based firms, so it's vital to check. When lowcostholidays went bust in 2016, customers weren't protected by ATOL because the company had moved to Spain in 2013.

Some travel companies display the ATOL logo on their websites even though they don't offer financial protection.

To check it's genuine, look for a number on the logo and check it out on the CAA's website.

You should be wary if the travel provider has no ATOL number, or if the number doesn't have four or five digits.

If you aren't sure about the website, don't book through it.

Another key term Brits should be aware of is ABTA. While ATOL protects flight-based packages, ABTA protects everything else such as cruise or self-drive trips.

Thomas Cook has managed to secure an extra £300million from lenders to get it through the winter months but the loan is dependent on a successful sale of its air fleet.

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CMC Market's chief analyst, Michael Hewson, warned that the rise in share price is not enough for the firm to completely recover from the weekend drop.

He told The Sun: "It’s very much a penny share now, which means price moves at levels of 10p are likely to be exaggerated, especially when you consider a year ago it was trading at 140p."

Bosses are also carrying out cost-cutting measures including sacking 150 head office workers and closing 21 shops resulting in the loss of 320 retail jobs.

Auditors Ernst & Young this week said there was "material uncertainty" around the sale of the firm's airline division but added that it should be able to stay afloat considering all the uncertainties it faces.

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Thomas Cook did not wish to comment on its share price but highlighted that plans to open its latest own-brand hotel in Crete are going ahead.

It is one of the 20 new holiday retreats that the travel agency is opening this summer.

If you're worried about an upcoming trip, read our guide on how to protect your holiday and get your money back if anything goes wrong.

Brit shamed by Thomas Cook over her skimpy outfit wears the same crop top on This Morning


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