UPDATE 3-Thomas Cook ditches 2010 operating profit goal

* Target was an 'aspiration', CEO says

* Expects to meet 2009, 2010 market forecasts

* Expects 2010 to be tougher than 2009

* Sees 20 mln stg swine flu impact in 2009

* Shares down as much as 7 percent

(Adds CEO comment, background, updates shares)

By Matt Scuffham

LONDON, Aug 13 (Reuters) - Thomas Cook (TCG.L) compounded gloom among Europe's travel operators on Thursday by warning it would miss its 2010 operating profit goal as economic conditions continued to worsen, sending its shares down as much as 7 percent.

The group, in which insolvent German retailer Arcandor (AROG.DE) still holds a 53 percent stake, said it would fall short of its hopes of achieving operating profit of 480 million pounds in 2010.

Shares in Thomas Cook were down 4.6 percent to 219 pence at 1205 GMT, having earlier been as low as 214 pence.

Travel companies around the world are struggling to cope with a drop in demand as consumers tighten their travel budgets. The United Nations' World Tourism Organisation (UNWTO) has said international tourism will decline by 4-6 percent this year.

On Wednesday, Europe's biggest tour operator TUI Travel (TT.L), 53 percent owned by TUI AG (TUIGn.DE), reported a 21 percent decline in winter bookings, overshadowing third-quarter earnings that were ahead of market expectations. [ID:nLB86912] On Tuesday, InterContinental Hotels (IHG.L), the world's biggest hotelier, said a recovery for the industry might be two years away. [ID:nLB610779]

Thomas Cook CEO Manny Fontenla-Novoa said the 2010 target had been set as an "aspiration" at the time of the group's formation prior to the economic downturn following a tie-up of Arcandor's travel unit and Britain's MyTravel in 2007.

"That was put out there at the time we merged the businesses when there was no recession and the pound was much stronger against the euro and the dollar," he said in an interview.

Fontenla-Novoa added, however, the company was confident of meeting market expectations for operating profit in 2010, which were significantly lower than the company's own target. He also reiterated the company's expectations of meeting 2009 forecasts.

Consensus forecasts for operating profit in 2009 and 2010 currently stand at 400 million pounds and 432 million pounds respectively, according to a Reuters survey of 14 analysts.

Thomas Cook and TUI Travel have cut the amount of holidays they sell by more than a quarter in the past two years in response to falling demand, enabling them to lift selling prices and avoid offering heavy late discounts to fill empty slots.

Fontenla-Novoa said he expected 2010 to be even tougher than 2009, with unemployment in Britain now at its highest rate for thirteen years. [ID:nLC524325]

Thomas Cook said summer 2009 trading had been robust but winter would be "a potentially challenging season" with bookings so far down year-on-year in Britain and Northern Europe.

Winter bookings are seen as more discretionary for consumers as they are often have a lower priority than summer trips.

Fontenla-Novoa said the company expected the outbreak of H1N1 swine flu to hit profits by about 20 million pounds during the course of this year. He also said the company remained in talks over a possible joint venture in Russia.

Thomas Cook is awaiting the outcome of moves by Arcandor's creditor banks to sell its stake in the holiday group, which they are currently holding as collateral against loans the stricken retailer had taken out.

Numis analyst Wyn Ellis cut his recommendation for Thomas Cook shares to 'add' from 'buy' and target price to 265 pence from 315 pence.

"Thomas Cook's update reflects a similar pattern to that reported by TUI Travel yesterday. With the Arcandor overhang also a concern, Thomas Cook shares are unlikely to outperform," Ellis said.

($1=.6084 Pound)

(Reporting by Matt Scuffham, Editing by John Bowker, Gilbert Kreijger, John Stonestreet)