Yahoo Finance Webjet loses $200 million in Thomas Cook collapse
Australian travel giant, Webjet, has lost up to $200 million in revenue and copped a $7 million blow to its bottom line after British travel group Thomas Cook collapsed yesterday.
The UK travel firm left around 600,000 tourists around the world stranded after it was unable to secure the AU$368 million it needed to stay afloat.
Also read: Travellers stranded as Thomas Cook sinks
Also read: 600,000 stranded: Global travel firm Thomas Cook goes under
Also read: Qantas asked to help Thomas Cook customers
In a statement to the Australian Securities Exchange, Webjet indicated it expected to earn between $150 and $200 million in total transaction value from Thomas Cook in FY20 – an amount which would now be lost.
The Aussie travel group said Thomas Cook owed Webjet approximately 27 million euros in outstanding receivables, which would be “treated as a one-off expense to the income statement”.
Webjet stated there would “be no impact” on the more than 3,000 hotel contracts Webjet acquired from Thomas Cook, which were wholly owned by WebBeds.
But Webjet stated it expected to earn an additional $27 to $33 million in revenue from a “range of drivers including Thomas Cook,” but the impact of Thomas Cook’s collapse will reduce that expectation by up to $7 million.
Webjet shares sank around 6 per cent off the back of the announcement before recovering some losses, bringing the shares to a loss of 3.5 per cent, The Australian reported.
Qantas asked to help Thomas Cook
Australia's national carrier has been asked to help repatriate travellers stranded following the collapse of UK travel company Thomas Cook.
"We have been approached for support and we're assessing what help we may be able to provide," a Qantas spokesman told AAP today.
What will happen to stranded Thomas Cook customers?
Around 50,000 Thomas Cook travellers were stranded in Greece; up to 30,000 stuck in Spain's Canary Islands; 21,000 were left in Turkey and 15,000 were in Cyprus. Airports saw queues of Thomas Cook travellers lining up for other ways to get home.
Now, British authorities have had to intervene to get the firm’s 150,000 UK-based customers back home from vacation spots across the globe.
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