U.K. Operators Benefit from XL Collapse

Following the fall of British tour operator XL Group, British travel companies TUI Travel and Thomas Cook Group each said it was confident about meeting expectations for the year ending Sept. 30.

TUI said in a pre-closing statement that reduced capacity has stoked higher demand, leaving less last-minute summer stock to sell. Consequently, the company does not intend to discount as heavily as in previous years.

Thomas Cook said winter 2008-2009 sales were in line with expectations across markets, particularly in the U.K.

XL Group ceased operations on Sept. 12, when XL’s fleet of planes was grounded, leaving tens of thousands of passengers stranded abroad. The affected companies in the collapse were XL Leisure Group, XL Airways UK, Excel Aviation, Explorer House, Aspire Holidays, Freedom Flights, Freedom Flights (Aviation), The Really Great Holiday Company, Medlife Hotels, Travel City Flights and Kosmar Villa Holidays.

While British operators stand to gain from the reduced capacity, the affect on the American travel market is not entirely clear.