Spirit AeroSystems' airline challenges echoed by Thomas Cook launching "strategic review"
Just days after budget airline Germania filed for bankruptcy and Ryanair posted their first loss since 2014, Thomas Cook has announced it is launching a “strategic review” into its airline. These developments mirror the concerns that Spirit AeroSystems aired in their Parliamentary Review article.
Although the airline is largely profitable – with earnings before tax and financing costs at £129 million for 2018 – it was losing money in the final quarter of last year.
The Thomas Cook Group, which a fleet of 103 jets operating in the UK, Scandinavia and Germany, has said it is looking for “greater financial flexibility and increased resources” for future investment into the hotel arm of its business.
While sales had risen by one per cent to £1.66 billion, the travel firm reported an operating loss in the last three months of the year of £60 million, up by £14 million on the year before, thanks to “highly competitive market conditions”.
Sky reported this morning that CEO of the group, Peter Fankhauser, said that “bookings for summer 2019 reflect consumer uncertainty, particularly in the UK.”
“Thomas Cook doesn’t need to own an airline outright to be a successful holiday company.”
Challenging market conditions and increased competition were just one of the issues addressed in Spirit Aerosystems’ Parliamentary Review article.
“Boeing and Airbus are under increasing price pressure from airlines, driving improved technologies into existing and new aircraft for cheaper, lighter and more fuel-efficient aircraft.
“Moreover, increasing competition from suppliers in low-cost countries seeking to penetrate the growing aerospace industry has led to incumbent companies changing their make and buy strategy and using these lower-cost suppliers to maintain their competitiveness.”