TUI Travel, Europe’s biggest travel firm, has said that it is likely that its full-year profit will be at the lower end of expectations.
Bookings fell because of uncertainty among British customers around the new government’s emergency budget in June.
That was somewhat offset by growth in its biggest market, Germany, though there too people booked cheaper holidays.
TUI Travel, in which Germany’s TUI AG holds a controlling stake of 57.5 percent, also said airspace closures as a result of the ash cloud from the Icelandic volcano had affected bookings.
TUI Travel’s share plunged, as did those of its rival Thomas Cook.