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Thomas Cook's revenue rises while margin dips

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Thomas Cook grew its group revenue by 7% to £1,749 million in the three months to 31 December, driven by more customers and higher pricing in its tour operating and airline businesses.

The gross profit increased by £16 million to £376 million, but the gross margin fell 50 basis points to 21.5% because of higher Spanish hotel bed cost inflation and a lower mix of long haul sales.

The group's seasonal underlying loss from operations improved by £10 million to £42 million, reflecting a good performance by Group Airline, against a weak comparative period for Condor

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