Group revenue was reported at £9,007 million, up 9% on a like-for-like basis (adjusted for foreign exchange), while underling Ebit (earnings before interest and taxes) was up £24 million to £330 million for the 12 months ended September 30.

But while having traded strongly in the first half, Cook’s UK tour operating business experienced “challenging conditions” in the second half of the year.

A combination of hotel price inflation, weaker sterling and increased air capacity made the market for holidays to Spain more competitive than in previous years, Cook said, putting pressure on costs and selling prices.

The business also absorbed the costs of rising fraudulent illness claims during the year, and of supporting 10,000 customers caught up in Hurricane Irma.

Revenue grew by 3% for that part of the business, but underlying Ebit declined by £34 million compared to last year.

In response, Cook said its UK tour operator implemented a set of actions to improve profitability.

“We have taken a robust approach towards illness claims including improving our handling and assessment processes, and taking legal action against fraudsters - as a result, the claim rate has declined dramatically,” said Cook.

“We are also rebalancing our destination mix towards more profitable, fast-growing destinations such as Turkey and Egypt, and we are continuing to drive operating efficiencies.”

In 2017 web bookings from the UK grew by more than 25% and more than 100 stores were closed.

“Together, we expect that these actions will help to return the business to its former profitable growth trajectory,” Cook said.

Commenting on the group’s overall results, Peter Fankhauser, chief executive of Thomas Cook, said: “We now see that the deliberate decision we made to put the customer back at the heart of our business is bearing fruit.

“Customers’ satisfaction with our holidays has increased strongly for a second consecutive year, growing in all of our main markets. I’m particularly pleased by the number of new customers we’ve won this year, showing us that we’re getting more people to look again at what we offer – and that more of our existing customers are recommending our holidays to family and friends.

“The actions we have taken in the last 12 months take us significantly further forward in our strategy for profitable growth.

“The strategic alliance we signed with Expedia will transform the way we work, enabling us to offer a much greater choice of hotels to Thomas Cook customers at lower cost and complexity to us.

“Meanwhile, the partnership with LMEY strengthens our own-brand hotel portfolio and reinforces our focus on a more streamlined portfolio of hotels where we can give customers the very best experience.

“While conditions are challenging in the UK, we have implemented a set of actions to improve performance.

“Overall, based on current trading, I believe that we are well-positioned to achieve a full year operating result in line with market expectations.”