Thomas Cook shares plummet further as travel firms misery continues
Shares in Thomas Cook tumbled more than 13 per cent today as the travel agency reels from profit warnings and debt concerns.
The fall wipes out gains made yesterday, when the company clawed back recent losses of nearly 60 per cent.
During a turbulent few weeks Thomas Cook has seen its shares fall to their lowest level since 2013.
Last week Thomas Cook issued its third profit warning of the year, blaming the hot British summer for its lethargic results. Investor fear is also mounting over the companys net debt of £389m.
Shares had bounced back 50 per cent yesterday after chairman Frank Meysman bought more than £80,000 of shares in the company.
The spike also came as Moodys downgraded its corporate family rating to B2 from B1 and changed its outlook to negative from stable.
But there has been no let up for the beleaguered company as shares plunged again today to 29.84p.
Stuart Gordon, senior analyst at Berenberg, said yesterdays spike was likely to be an exception in a general downward trend for the firm.
He noted that yields and bonds had stayed “stubbornly high” despite the equity rise, saying this may have contributed to todays fall.