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Travel group Thomas Cook has said it expects to achieve greater savings than previously expected following its recent merger.

Savings of €140 million (£100 million) were originally pledged in the wake of a tie-up between the travel unit of German group KarstadtQuelle and UK rival MyTravel.

But in a statement today Thomas Cook confirmed it now expects to achieve merger synergies of up to €200 million (£144 million).

Europe's second-largest travel firm also announced plans to double its operating profit to €620 million (£445 million) over the next three years and to increase group revenue to around €13 billion in 2009/10.

Thomas Cook - which expects revenue from its mainstream travel services to decline as a proportion of its sales as revenue from independent travel and financial services grows - also confirmed details of future dividend payments to shareholders.

The travel giant expects to recommend dividends per share for each year in the range of 40 to 50 per cent of earnings, paying one third of an annual dividend as an interim and two thirds as a final dividend.

Commenting on the group's progress to date, Thomas Cook joint chief executive Manny Fontenla-Novoa said: "Through the merger of Thomas Cook and MyTravel we have transformed both our business and the industry in general.

"Building on this strong foundation we are now entering a further new and exciting phase of our development which will focus on leveraging the strength of our mainstream business, developing a market leading independent travel business, driving further growth through our unique travel-related financial services capability and taking advantage of the significant opportunities emerging markets represent for us."

Thomas Cook reiterated its belief the group's performance for the current year will be in line with expectations and said it continued to be encouraged by bookings for 2007/08.