Thomas Cook’s latest financial results show the cost of swine flu on the holiday industry.

Travel firm Thomas Cook has posted its latest financial results which show the significant impact of the swine flu pandemic on the holiday market.

In total, the swine flu pandemic racked up a £12.6 million bill for the firm as holidaymakers cancelled trips to Mexico and other destinations.

The company said that the impact of swine flu was “more significant than anticipated”.

In the nine months to June 2009, Thomas Cook experienced a loss of £49.5m, with costs from the completion of the merger between itself and MyTravel being partly to blame.

Cumulative bookings for the summer season have fallen, in particular long-haul flights. The previously-popular holiday destination of Cancun in Mexico has experienced a huge drop in demand.

Despite the disappointing results, the company remains confident about achieving the full expectations for the trading year.

Manny Fontenla-Novoa, Group CEO, said: “Our performance during this tough period demonstrates the value of our flexible, asset-light model and the ability of the Group’s experienced management team to read market conditions and to ensure we have the right capacity and product mix.

“The increasing strength and recognition of our brands has reinforced our position at a time when consumers are favouring a reliable travel provider they trust.”

Thomas Cook originally predicted an operating profit of £480m in 2010. Due to the tough market conditions, the firm claims the target is now unrealistic but hopes to achieve market expectations.