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Slowdown in consumer spending is failing to knock holiday plans, with Thomas Cook reporting strong summer bookings.

Thomas Cook losses were cut by 15 per cent to £177.5 million in the six months to April 30th.

Results released today by the tour operator show an unaudited reported loss from operations at £163.7 million, compared with £148.6 million in 2007.

First-half losses came from costs relating to the merger last year with the MyTravel Group.

However, the firm is upbeat on prospects with trading for summer '08 strong in all markets.

Sales rose 72 per cent to £2.96 billion, unaffected by falls in consumer spending with 19 per cent fewer holidays left to sell in the UK compared to last year.

Thomas Cook has also managed to shield itself from oil price rises for its airline as group fuel requirements for the rest of the financial year are hedged to 100 per cent for crude and 93 per cent for jet fuel.

This means the group is able to offset recent oil price rises.

Thomas Cook has also hedged against currency movements.

Manny Fontenla-Novoa, chief executive of Thomas Cook group, said: “I’m delighted with our performance over the winter and we are in a very good position for the summer season. I remain confident that we will achieve our goals for this year.

"For the longer term, our strategy is on track, our merger synergies are coming through, and we continue to target £480 million of operating profit in 2009/10.”