Morgan Stanley sees "tougher" 2010 ahead for TUI and Thomas Cook

Thomas Cook Group and TUI Travel values were downgraded by Morgan Stanley, in light of a bleaker outlook for 2010 and fuel hedges currently above market.

Morgan Stanley, "Both TUI Travel and Thomas Cook Group have generated solid margin increases since their mergers, but 2010 looks like being a tougher year, with costs currently rising faster than sales, given that fuel was hedged at much higher prices".