Thomas Cook loses £20 mln on Egypt, Tunisia unrest

Thomas Cook's chief executive resigned on Wednesday following a disastrous year for Europe's second largest travel firm, the company announced in a statement.Manny Fontenla-Novoa, who took over four years ago, has presided over three profit warnings in the last year linked to unrest in key holiday destinations Egypt and Tunisia and a poor performance in Thomas Cook's British division.It is believed Fontenla-Novoa agreed to stand down after accepting responsibility for the poor performance in Britain.

Tour operator Thomas Cook says it expects the disruption caused by the political unrest in Egypt and Tunisia to cost it £20m.

TUI Travel warned Thursday that political turmoil in Egypt and Tunisia could cost Europe's largest tour operator up to £30 million ($49 million, 35 million euros)."We are closely monitoring events in Egypt and Tunisia and the safety of our customers is our primary consideration," said chief executive Peter Long in the group's first-quarter results statement."Early indications are that customers are choosing to rebook to alternative destinations and we are taking action to remix our programmes in line with customer demand."

Marc Chandler submits:Through the Middle East, Tunisia's recent experience is prompting policy responses. Officials seem concerned that the ease at which the Tunisia's government was toppled could embolden the disenchanted elsewhere. High food prices and mostly soft growth prospects leave many countries vulnerable, especially non-oil producing Arab countries. Several countries have begun implementing policies mean to diffuse and prevent social unrest.

Thomas Cook Group PLC said Wednesday it has agreed to sell its North American operations to Red Label Vacations Inc. for $5.3-million. Red Label, which operates the vacation website Redtag.ca, said the deal would see it take over the operations of Thomas Cook Canada Inc. and Thomas Cook USA Holdings, Inc., which operates as a tour operator and distribution network in Canada.

Unrest in key tourism destinations such as Tunisia and Egypt weigh heavily on profits at Thomas Cook.

Travel firm Thomas Cook warns that the political unrest in Egypt and Tunisia will hit its profits by an estimated £20m.

Dr. Stephen Leeb submits:The uprisings in Tunisia and Egypt have captured most of the headlines over the past few days, and indeed caused the stock market to dip on Friday. However, looking below the surface, we find reason to stay optimistic.