Thomas Cook news – live: Thousands of holidays at risk as travel company faces collapse

A short TravelMole poll suggests a small majority of travel agents are continuing to book Thomas Cook flights and packages, despite fears the company might collapse.

One large independent travel agent told us: "We're still booking Thomas Cook flights because they're the best option and if they don't go ahead, we'll just have to deal with it."

When the stock market opened, Thomas Cook shares lost half their value within minutes, later recovering to 20 per cent below their close last night.

The company has lost about 97 per cent of its value in the past 16 months.

At noon the market capitalisation of Thomas Cook – signalling what investors think it is worth – is £56m.

In the past year it has lost 95 per cent of its value.

Joanna Ford, partner at law firm Cripps Pemberton Greenish, says:

Funding for travel companies has always been particularly difficult in September when summer payments become due, and this is compounded at the moment with Brexit paralysis meaning people are wary of booking holidays post 31 October.

This makes the funding challenge for Thomas Cook even tougher, and adding to that pressure their trading partners are acutely aware of the potential ramifications of Thomas Cook’s collapse and so are shortening payment terms or requiring upfront payments.

Our clients in this sector have been actively looking at ways to protect their position in this way, and trying to ensure that customer cash is properly ring-fenced in separate trust accounts.

They also realise that this may be too late unless Thomas Cook manages to secure a last-minute rescue deal over the weekend.

The key question for Thomas Cook holidaymakers with forward bookings will be: is their money safe?

The Independent's Simon Calder answers:

Were the worst to happen and Thomas Cook closes, the vast majority of travellers will be able to reclaim their cash. Many current customers paid for some or all of the trip by credit card. In this situation, the card issuer will be expected to provide a full refund, whether for a package holiday (flights and accommodation bought in the same transaction) or any other purchase.

People who paid for a package holiday with a debit card should make a claim under the Atol scheme, which is administered by the CAA.

For other trips, such as flight-only purchases paid for by debit card, the the first place to seek a remedy is the card issuer. Although there is no legal requirement for debit card issuers to pay out if the supplier collapses, the voluntary “chargeback” scheme should help you out.

Salman Haqqi, personal finance expert at money.co.uk, comments:

Holidaymakers will again be understandably concerned about the plight and uncertain future of Thomas Cook, but it doesn't need to ruin your holiday as long as you ensure you already have the right protection in place.

Even if your airline or holiday provider is Atol protected, we would always recommend you purchase comprehensive travel insurance at the point of booking your holiday, as you may not be covered if you take out holiday insurance later down the line.

Atol protection will cover your flights, accommodation and car hire if they were part of a package deal, but it won't cover incidentals such as meals and taxis.

Also, if you only paid for the flight through a holiday provider like Thomas Cook and they go bust while you're away, you won't necessarily be covered for incremental or additional accommodation and car hire costs if you are stuck in a destination.

You will need to check if your service provider has Atol protection, otherwise it will be your responsibility.

And if thousands of people are trying to get home and there aren't any available seats for several days, those costs could quickly mount up.

Comprehensive travel insurance should cover these costs, but check the small-print first because not all policies will include end-supplier failure or airline failure, which covers you in the event that a travel company stops operating.

If you paid for any of your booking by credit card, you may also be covered under section 75 of the Consumer Credit Act, which protects amounts between £100 and £30,000 but sadly doesn’t cover debit cards, so make sure you check all your documentation to ensure you are fully protected.

Thomas Cook has put together a short Q&A for customers concerned about their upcoming bookings.

Find it here.

Thomas Cook has cut the price of a week’s package holiday from Gatwick to Icmeler in Turkey, departing on 8 October, by £25 to £166.

The price includes flights (with 15kg baggage), transfers and accommodation.

The union Unite, which represents almost 3,000 cabin crew and engineers at Thomas Cook's airline, has called on the government to intervene.

Diana Holland, assistant general secretary at Unite, says:

We are deeply concerned about the current situation at Thomas Cook, particularly any moves by the government or the Civil Aviation Authority that would lead to the business and airline ceasing to operate.

It is clearly in the best interests of the employees, customers and the taxpayer for the airline to continue operate. This is viable, profitable business with a world class workforce. Any revoking of its operating licence would be an act of economic vandalism, the bill for which would needlessly land on the shoulders of UK taxpayers.

We call on government ministers to secure a better outcome for the travelling public, employees and the taxpayer by not revoking or suspending the operator licence for Thomas Cook airlines. It is in their remit to do so, and it would ensure that there is the ability for the company continue as a sustainable business.

Broadcaster Gyles Brandreth remembers his first job, which was at a branch of Thomas Cook in Mayfair.