Thomas Cook says on track as trading improves

LONDON, March 31 (Reuters) - British holiday company Thomas Cook said it was confident of meeting full-year expectations, buoyed by higher winter bookings and improved trading across Europe ahead of its summer season.

For the coming summer, when holiday companies make the bulk of their profits, Thomas Cook (Xetra: A0MR3W - news) said the season was 54 percent sold, 2 percent higher than this time a year ago, with tour operator bookings and average prices down 1 percent.

UK demand remained healthy, Thomas Cook said on Tuesday, with trading in Continental Europe and Northern Europe having improved since it last reported in February.

The firm said that while it continued to see pricing pressure caused by excess airline capacity and competition, it was confident of delivering growth, supported by new products and cost savings.

The company said its winter season was 95 percent sold, with bookings up 1 percent and average selling prices down 2 percent.

Last Wednesday, rival TUI (LSE: TUI.L - news) said holiday sales for its winter season rose 1 percent, while holiday prices for the coming summer were also 1 percent higher, with summer bookings up 1 percent. (Reporting by Neil Maidment; Editing by Mark Potter)