Thomas Cook summer bookings strong

By Matt Scuffham

LONDON (Reuters) - Thomas Cook, Europe's second-largest travel company, reported strong summer bookings on Tuesday, showing its resilience to the consumer slowdown and lifting its shares as well as those of rival TUI Travel (TT.L).

The group, created last year from the tie-up of German retailer Arcandor's travel unit and Britain's MyTravel, also reported a 15 percent narrowing in its first-half to April 30 operating loss to 177.5 million pounds.

Tour operators traditionally make a loss in the first half which does not include the key summer holiday period.

Chief Executive Manny Fontenla-Novoa has repeatedly emphasised the resilience of the package holiday industry in times of a consumer slowdown, saying people are reluctant to sacrifice their annual holiday.

British consumer confidence fell in May to its weakest since 1990, according to a survey by GfK NOP last month.

Thomas Cook Group (TCG.L), which has over 3,000 outlets including more than 1,000 in Britain, said it continues to target 480 million pounds operating profit in fiscal 2010 and was confident of meeting expectations for the current year.

"There are few cracks showing here and the bears will have little to pick at," said Mark Brumby of Blue Oar Securities.

Thomas Cook shares, which have outperformed the FTSE All Share Travel & Leisure Index by 11 percent since the start of the year, were up 1.8 percent at 238-1/2 pence at 12:20 p.m., with TUI Travel 2.3 percent higher at 210-1/2p.