Package holiday giant Thomas Cook said trading for winter 2007/8 and summer 2008 has continued to be 'encouraging'.

The company added that it is in a 'strong position' for the rest of the year while reiterating it expects synergies of at least €200 million following the merger of Thomas Cook and MyTravel.

Thomas Cook reported a reduction of 27% in its operating loss before exceptional items to E106.8 million in the two months to December 2007. That is in line with its expectations and reflecting the seasonality of the business.

The group said the improved operating result reflects costs savings and improvements in underlying margins, partially offset by the increased cost of fuel. Shares remained steady at 288p.