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Thomas Cook's revenues rose in 2018 to approximately 9.6 billion British pounds. The Group had responded to customer demand by expanding their summer and winter programs in 2017, helping to increase revenue. However the summer heatwave of 2018 negatively impacted sales towards the end of the fiscal year, resulting in a pre-tax loss of 53 million pounds. The company collapsed in 2019 after failing to secure a government bailout.

Why did Thomas Cook collapse?

On September 23, 2019, the Thomas Cook Group was forced to cease operations after negotiations to save the holiday travel firm from administration failed, leaving a reported 600,000 customers stranded abroad and thousands of staff without jobs. It is thought that the company succumbed to the same challenging market conditions that led to the collapse of another British airline and travel group, Monarch, in 2017. However Thomas Cook already had it's own problems, as it had suffered from massive debts since forming as a merger between Thomas Cook AG and package holiday operator MyTravel Group plc in 2007. In the intervening years, various mergers and acquisitions had helped Thomas Cook to remain a major player (the brand became the UK’s largest travel agency on the high street following a merger and eventual buyout of Co-operative Travel in the early 2010s). But ultimately its finances could not be saved, as rescue talks to secure the funding needed to prevent them going into liquidation failed.

Thomas Cook’s history

Prior to its collapse, Thomas Cook was the world’s oldest travel company. Its origins date back to the 19th century, with the founding of the Thomas Cook & Son travel company that originally organized tours from the United Kingdom (UK) to Europe and the United States. The brand’s legacy survived through mergers and acquisitions of other travel companies and airlines, with the Thomas Cook Group forming in 2007. Thomas Cook’s business segments were primarily airline and tour operations, with its main markets in the UK and continental Europe. Thomas Cook Airlines Limited, the UK airline business, reported their revenues separately.