Thomas Cook has said that it is confident in reaching its financial targets for the year, after a cost saving plan began to bear fruit for the travel firm.

The group’s turnaround plan is half way through its scheduled three years, which includes job cuts, branch closures and disposals.

A disposal of Gold Medal, a distributor of scheduled flights, hotels and car hire, helped it reach its targets for disposals whilst summer bookings are continuing in line with expectations.

Harriet Green, group chief executive, said in a statement: “I am pleased to report further rapid progress delivering our strategy for sustainable profitable growth. Q1 underlying EBIT improved by £10 million to £(56) million.  On a last 12 months basis, to place the quarter in an annual context and reconcile with our targets, underlying EBIT is up 36% to £274 million. Our Q1 results, new product revenue growth, web integration, cost out and profit improvement programmes combined with an intense business focus and financial discipline, all underpinned by the Thomas Cook Business System, give us confidence of achieving our targets and delivering even more value in the years to come."