Thomas Cook shares plunge after massive loss leaves 'little doubt' of Brexit impact

Thomas Cook (TCG.L) shares plunged Thursday as the travel group reported a £1.5bn ($1.94bn) loss for the first half of the year.

Thursday’s report was Thomas Cook’s third profit warning in less than a year, which has led to an 80% drop in its share price since 2018. Shares were down 20% on Thursday to a more-than-six year low.

Most of the loss — £1.1bn — was due to a write-down of the value of My Travel, who Thomas Cook merged with in 2007. Thomas Cook Group CEO Peter Fankhauser also attributed the drop to outside factors such as a heatwave and the ongoing Brexit process.

"The prolonged heatwave last summer and high prices in the Canaries reduced customer demand for winter sun, particularly in the Nordic region, while there is now little doubt that the Brexit process has led many UK customers to delay their holiday plans for this summer," Fankhauser said.

The company warned that second-half earnings would also be lower than last year.

"The continued competitive pressure resulting from consumer uncertainty is putting further pressure on margins,” Fankhauser said. "This, combined with higher fuel and hotel costs, is creating further headwinds to our progress over the remainder of the year."

Thomas Cook is currently exploring a sale of its airline — which has a fleet of 103 jets — and said on Thursday it had received multiple bids.