Travel Giant Thomas Cook Collapses, Sending Rival Tui and Low-Cost Airlines Higher

Europe EZJ.LN RY4C.DB Dart Group easyJet Ryanair Thomas Cook Airlines Passenger Airlines Tour Operators Travel Agencies Air Transport Leisure/Arts/Hospitality Tourism Transportation/Logistics Meryl Witmer Peter Fankhauser Tui European Union Countries Europe United Kingdom Western Europe ESYJY EZJ.LN I/AIR I/ATR I/TAT M/LEAH M/TRSH N/EEC R/EC R/EU R/UK R/WEU RY4C.DB RYA.LN RYAAY TCG.LN TUI1.XE Barrons.com Barrons Blogs CODES_REVIEWED Europe Morning Movers Transportation author Callum Keown author|Callum Keown author Callum Keown id Callum Keown name Callum Keown topicid rank 1 barrons_display_subject BAREUROPE barrons_display_subject|BAREUROPE codetype BARRONS_DISPLAY_SUBJECT canbedisplaysubject true value BAREUROPE source MANUAL status modified name Europe code BAREUROPE co Dart Group co|Dart Group fullextractedtext Dart Group country UK symbol DTG.LN ticker UK:DTG displayname Dart Group extractedtext Dart Group source FACTIVA subcat com seoname dart_group countrycode UK name Dart Group exchangeisocode XLON chartingsymbol STOCK/UK/XLON/DTG codetype co code dart_group co airtol co|airtol codetype co why about source FACTIVA subcat com code airtol significance prominent orgtype public onlinesignificance prominent fcode airtol co preus co|preus codetype co why about source FACTIVA subcat com code preus significance prominent orgtype public onlinesignificance prominent fcode preus co easjet co|easjet country UK symbol EZJ.LN codetype co displayname easyJet why occur extractedtext easyJet source FACTIVA seoname easyjet name easyJet countrycode UK relevancerange low chartingsymbol STOCK/UK/XLON/EZJ fcode easjet fullextractedtext easyJet ticker UK:EZJ confidence 100 subcat com code easjet relevance 9 significance passing onlinesignificance passing-mention confidencerange high exchangeisocode XLON co rynaer co|rynaer country US symbol RY4C.DB codetype co displayname Ryanair why occur extractedtext Ryanair source FACTIVA seoname ryanair_holdings name Ryanair relevancerange low chartingsymbol STOCK/US/XNAS/RYAAY fcode rynaer fullextractedtext Ryanair ticker RYA.DB confidence 100 subcat com code rynaer relevance 9 significance passing onlinesignificance passing-mention confidencerange high exchangeisocode XNAS co Thomas Cook co|Thomas Cook fullextractedtext Thomas Cook country IN symbol 500413.BY ticker TCG.LN codetype co displayname Thomas Cook extractedtext Thomas Cook source FACTIVA subcat com code thomas_cook seoname thomas_cook_india name Thomas Cook exchangeisocode XBOM chartingsymbol STOCK/IN/XBOM/500413 company EZJ.LN company|EZJ.LN name easyJet significance PASSING-MENTION company RY4C.DB company|RY4C.DB name Ryanair significance PASSING-MENTION djn ESYJY djn|ESYJY codetype djn why occur source FACTIVA code esyjy name ESYJY significance passing onlinesignificance passing-mention fcode ESYJY djn EZJ.LN djn|EZJ.LN codetype djn why occur source FACTIVA code ezj_ln name EZJ.LN significance passing onlinesignificance passing-mention fcode EZJ.LN djn RY4C.DB djn|RY4C.DB codetype djn why occur source FACTIVA code ry4c_db name RY4C.DB significance passing onlinesignificance passing-mention fcode RY4C.DB djn RYA.LN djn|RYA.LN codetype djn why occur source FACTIVA code rya_ln name RYA.LN significance passing onlinesignificance passing-mention fcode RYA.LN djn RYAAY djn|RYAAY codetype djn why occur source FACTIVA code ryaay name RYAAY significance passing onlinesignificance passing-mention fcode RYAAY djn TCG.LN djn|TCG.LN codetype djn why about source FACTIVA code tcg_ln name TCG.LN significance prominent onlinesignificance prominent fcode TCG.LN djn TUI1.XE djn|TUI1.XE codetype djn why about source FACTIVA code tui1_xe name TUI1.XE significance prominent onlinesignificance prominent fcode TUI1.XE djn I/AIR djn|I/AIR codetype djn why about source FACTIVA code i_air name I/AIR significance prominent onlinesignificance prominent fcode I/AIR djn I/ATR djn|I/ATR codetype djn name I/ATR why lineage source FACTIVA code i_atr fcode I/ATR djn M/TRSH djn|M/TRSH codetype djn name M/TRSH why lineage source FACTIVA code m_trsh fcode M/TRSH djn I/TAT djn|I/TAT codetype djn name I/TAT why association source FACTIVA code i_tat fcode I/TAT djn M/LEAH djn|M/LEAH codetype djn name M/LEAH why lineage source FACTIVA code m_leah fcode M/LEAH djn R/UK djn|R/UK codetype djn why about source FACTIVA code r_uk name R/UK significance prominent onlinesignificance prominent fcode R/UK djn N/EEC djn|N/EEC codetype djn name N/EEC why lineage source FACTIVA code n_eec fcode N/EEC djn R/EC djn|R/EC codetype djn name R/EC why lineage source FACTIVA code r_ec fcode R/EC djn R/EU djn|R/EU codetype djn name R/EU why lineage source FACTIVA code r_eu fcode R/EU djn R/WEU djn|R/WEU codetype djn name R/WEU why lineage source FACTIVA code r_weu fcode R/WEU first_publish_headline Travel Giant Thomas Cook Collapses Sending Rival Tui and Low-Cost Airlines Higher first_publish_headline|Travel Giant Thomas Cook Collapses Sending Rival Tui and Low-Cost Airlines Higher flow Barrons.com flow|Barrons.com codetype FLOW name Barrons.com source MANUAL value Barrons.com code online status modified name Online title Product code Barrons.com flow Barrons Blogs flow|Barrons Blogs codetype FLOW source MANUAL title Product code Barrons_Blogs name Barrons Blogs value Barrons Blogs status modified headline Travel Giant Thomas Cook Collapsed and Now Rival Tui and Low-Cost Airline Stocks Are Gaining headline|Travel Giant Thomas Cook Collapsed and Now Rival Tui and Low-Cost Airline Stocks Are Gaining in i7501 in|i7501 codetype in why about source FACTIVA code i7501 name Passenger Airlines significance prominent onlinesignificance prominent fcode i7501 in i75 in|i75 codetype in name Airlines why lineage source FACTIVA code i75 fcode i75 in iairtr in|iairtr codetype in name Air Transport why lineage source FACTIVA code iairtr fcode iairtr in itsp in|itsp codetype in name Transportation/Logistics why lineage source FACTIVA code itsp fcode itsp 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nwchain|SB524137901932371845855045855680801370333581 pe 116935377 pe|116935377 lastname Witmer displayname Witmer, Meryl confidence 93 why occur extractedtext Meryl Witmer source FACTIVA relevance 75 significance passing firstname Meryl onlinesignificance passing-mention name Meryl Witmer confidencerange high relevancerange medium fcode 116935377 codetype pe code 116935377 nameformat surname_first pe 12868064 pe|12868064 lastname Fankhauser codetype pe displayname Fankhauser, Peter confidence 100 why occur extractedtext Peter Fankhauser source FACTIVA code 12868064 relevance 50 name Peter Fankhauser significance passing firstname Peter onlinesignificance passing-mention nameformat surname_first confidencerange high relevancerange low fcode 12868064 pe Tui pe|Tui codetype pe displayname Tui extractedtext Tui source FACTIVA code tui name Tui firstname Tui nameformat surname_first re uk re|uk codetype re why about source FACTIVA subcat cntry code uk name United Kingdom significance prominent onlinesignificance prominent fcode uk re eecz re|eecz codetype re why lineage source FACTIVA subcat geopo code eecz name European Union Countries fcode eecz re eurz re|eurz codetype re why lineage source FACTIVA subcat snr code eurz name Europe fcode eurz re weurz re|weurz codetype re why lineage source FACTIVA subcat sc code weurz name Western Europe fcode weurz relay SYND relay|SYND codetype RELAY name Syndication source EXPANDER value SYND code synd status modified statistic CODES_REVIEWED statistic|CODES_REVIEWED name CODES_REVIEWED value CODES_REVIEWED codetype STATISTIC code CODES_REVIEWED subject BAREUROPE subject|BAREUROPE codetype SUBJECT title Europe code BAREUROPE name Europe canbedisplaysubject true ruleid BAREUROPE value BAREUROPE status modified subject BARTRANSP subject|BARTRANSP codetype SUBJECT title Transportation code BARTRANSP name Transportation canbedisplaysubject true ruleid BARTRANSP value BARTRANSP status modified subject BARMORMOV subject|BARMORMOV codetype SUBJECT title Morning Movers code BARMORMOV name Morning Movers ruleid BARMORMOV value BARMORMOV canbedisplaybrand true status modified wordcount 556 wordcount|556 Getty Images Getty Images Getty Images Getty Images Getty Images Getty Images Getty Images Getty Images Getty Images Getty Images Getty Images Getty Images Getty Images Getty Images Getty Images Travel Giant Thomas Cook Collapsed and Now Rival Tui and Low-Cost Airline Stocks Are Gaining Travel Giant Thomas Cook Collapsed and Now Rival Tui and Low-Cost Airline Stocks Are Gaining Thomas Cook Collapses as Rival Tui and Low-Cost Airline Stocks Jump

Travel operator Tui and low cost airlines soared on Monday after Britain’s oldest travel agent Thomas Cook collapsed.

Travel Giant Thomas Cook Collapses, Sending Rival Tui and Low-Cost Airlines Higher

Travel operator Tui and low cost airlines soared on Monday after Britain’s oldest travel agent Thomas Cook collapsed.

https://www.wsj.com/articles/thomas-cook-enters-compulsory-liquidation-11569206090 https://www.marketwatch.com/story/thomas-cooks-liquidation-wipes-out-travel-company-worth-185-billion-just-18-months-ago-2019-09-23 https://www.barrons.com/articles/a-travel-play-and-a-box-stock-favored-by-eagle-capitals-meryl-witmer-51547863453 Travel Giant Thomas Cook Collapsed and Now Rival Tui and Low-Cost Airline Stocks Are Gaining By Callum Keown Getty Images

Travel operator Tui and low-cost airline stocks soared on Monday after Thomas Cook, Britain’s oldest travel agent, collapsed.

The 178-year-old firm failed to secure the further £200 million needed to survive over the weekend, leaving 150,000 British holidaymakers stranded abroad.

The back story.

The tour operator agreed a £900 million rescue deal with Chinese investor Fosun last month, which would have written off £1.7 billion in debt.

However, on Friday Thomas Cook said it needed an additional £200 million following a demand from its banks.

The company had said it was in talks with its banks and bondholders as well as its largest shareholder Fosun.

Britain’s oldest travel agent, founded in 1841, has faced mounting headwinds as online holiday booking companies have grown in popularity, and low-cost airlines provide tough competition. Last year’s summer heat wave in Europe, and high temperatures again this year, led to a fall in holiday demand.

The company reported a £1.5 billion ($1.75 billion) loss in the first half of the financial year, including a £1.1 billion loss following its decision to write down the value of My Travel, which it merged with in 2007. It predicted further headwinds and claimed that Brexit had led to customers delaying holiday plans.

What’s new.

Thomas Cook confirmed on Monday that it had entered compulsory liquidation after failing to secure a further £200 million over the weekend.

Chief executive Peter Fankhauser, who has taken home more than £8 million in remuneration since taking over in 2014, said it was a “matter of profound regret.”

The government-backed Civil Aviation Authority has stepped in to undertake an “emergency operation” to repatriate an estimated 150,000 Brits stranded abroad.

Package holiday rival Tui’s stock soared 7.5%, despite a small number of holidays with flights booked on Thomas Cook’s airline being affected.

Low-cost airlines also took off on Monday, with easyJet climbing 3.4% and Ryanair lifting 1.1% after Thomas Cook’s final passenger flight came into land for the final time. Dart Group, a pick from Eagle Capital’s Meryl Witmer at this year’s Barron’s Roundtable, has gained 7.1%.

Moving forward.

Intense competition has squeezed airlines and travel operators in recent years, and Thomas Cook’s collapse will alleviate overcapacity in the industry.

However, greater problems face the sector, including falling holiday demand and the rise of online booking companies.

Platforms, such as AirBnB and apps for car hire and flights, have allowed consumers to book each aspect of their holiday separately.

It will take more than the demise of Thomas Cook to inject some much need life back into travel operator industry in the long term.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.