THOMAS COOK has blamed fake holiday sickness claims and increased competition in Spain for its profits in the UK falling by 40 per cent.
The holiday firm said it was taking action to restore profitability after UK earnings fell by £34 million (€38.34 million) in its financial year to 30 September. It did however make £52 million (€58.63 million) in profits.
Thomas Cook also blamed a weaker pound and, like rivals, being forced to seek greater capacity in Spain due to terrorism fears in Egypt and Turkey.
Rising hotel prices, a surge in costs from fraudulent sickness claims and a massive bill supporting 10,000 customers caught in Hurricane Irma, which devastated parts of the Caribbean and the US are all believed to have contributed to the dive in profits.