The rush for the sun provides boost for Thomas Cook

The group reported a 15 per cent surge in summer 2010 holiday bookings in the last four weeks, with bookings to Turkey and Egypt in high

demand.

Thomas Cook credited its TV campaign featuring footballer Jamie Redknapp and his singer wife Louise for helping drive the sales hike.

It said UK average prices for summer breaks were up 2 per cent, while prices for the current winter season had risen 6 per cent.

But the increase in cost has not deterred consumers from seeking some summer sun, despite a slow start for sales in the peak January selling season due to the snow and adverse weather.

Manny Fontenla-Novoa, group chief executive of Thomas Cook,

said: "Bookings for the summer 2010 season have improved significantly, marking a positive response to our current marketing campaigns and highlighting the resilience of the summer holiday."

The group is focusing on more profitable summer destinations, in particular medium-haul and all-inclusive deals, and has been cutting capacity for short and long-haul trips.

"As a result of these actions, we are in a strong position both in terms of product left to sell and margin as we move towards summer," said Thomas Cook.

But in spite of the recent spike in summer bookings, a slow start to the selling season and capacity cuts has left total UK bookings since October 1 down 8 per cent.

Winter 2009/10 bookings have fallen 10 per cent – down 6 per cent in the past month – after a planned 8 per cent cut in holiday capacity.

However, the proportion of holidaymakers opting for upmarket four or five star breaks and all-inclusive deals rose 11 per cent in a boost to profit margins.

Its first quarter results traditionally show a seasonal loss and Thomas Cook today revealed it was 81.5m in the red – although this was an improvement on the 112m pre-tax loss seen a year earlier.

Revenues for the quarter to December 31 fell 6 per cent to 1.7bn, although this was largely as a result of the planned reduction in holiday capacity. Higher fuel costs and the capacity cuts saw operating losses widen to 41.3m from 27.4m.

Tour operators have been slashing capacity over the past two years to meet lower demand amid the recession. But Thomas Cook said it was expanding its summer 2010 offering in continental Europe as appetite remains strong in the region.