Earlier in the day TUI Travel posted its own trading update and saw its figures boosted by the benefits of a milder winter in Europe. Travel costs have been reduced and the cost of disruptions has greatly decreased. The outlook for the rest of the year is also looking strong, with summer 2015 sales set to be 7-10% higher than last year. By the same token, because of the date of Easter this year, the figures have not had the benefit of this long weekend.
We would expect very similar benefits to be mentioned on Wednesday when Thomas Cook reports its figures.
The travel company is still turning its business around following the near fatal collapse that happened in 2011. A combination of factors almost brought the company to its knees; the weak-looking eurozone and the spring rising in both Tunisia and Egypt in particular caused the company substantial costs.
Shares in Thomas Cook have improved ninefold since its 2011 lows, and the outlook has improved dramatically. Of course, the improving spending power that Europeans have, as worries have eased, will have helped.
The short-term outlook for the shares remains positive as they continue to be propped up by the 50- and 100-day moving averages. Only a break below both of these would cause us to reassess the companies short to medium term outlook.