Of course, the company´s 600,000 stranded passengers and 22,000 redundant employees could not see any positives come out of Thomas Cook´s disintegration.
Even though they´re vastly outnumbered, we know a few people who will be bouncing up and down about the infamous travel company´s demise. The winner of Europe’s Leading Charter Airline 2019 had many rival companies, almost all of which have benefitted economically since the fall of travel giant, Thomas Cook, was announced yesterday.
TUI, a German tour operator, grew by 2.1 per cent in early trading Tuesday after rising by over 6 per cent on Monday when its biggest competitor among European package holidays entered compulsory liquidation. TUI is now up over 25 per cent from its August low, even though half of its value has been lost since May 2018.
Similarly, Ryanair and EasyJet, two of the most popular budget airlines that previously swiped customers from Thomas Cook due to their online-savvy presence, saw their stock prices rise by 2.2 per cent and 0.9 per cent, respectively.
EasyJet is currently at a four-month high. The recent recovery comes amid growing confidence that a hard, hostile Brexit can potentially be avoided at the end of October.
All airlines specialising in European breaks are exposed to the same risks that led to the bankruptcy of Thomas Cook, however, some are coping better than others.
For example, Ryanair has made less of a recovery this year due to rolling aircrew strikes. But luckily for them, it seems as if this issue might be edging closer to a resolution after pilots based in the U.K. called off a series of strikes that were scheduled for this week.
TUI labelled its business model as “resilient” in a statement about underlying market conditions to the stock exchange on Monday. They also mentioned some formidable and long-running challenges they have been facing:
“Our Markets & Airlines business faces a number of ongoing external challenges such as the grounding of the 737 MAX aircraft, airline overcapacities and continued Brexit uncertainty”.
The travel and tourism company´s underlying operational profit is still expected to decrease by 26 per cent from 2018. TUI also commented:
“These external challenges will continue in (2020) – therefore, we will focus on becoming more cost-competitive in our Markets & Airlines business to protect and extend our market share where possible”.