The company saw strong summer trading and "encouraging" early sales for next winter as it remained on track to meet expectations this year.

The firm has also trimmed its capacity - meaning it has fewer holidays to sell in the heavily-discounted "lates" market - which helped boost average UK prices by 3%.

It said: "We have not seen any effect on our trading to date from the current economic conditions.

"We continue to believe this can be primarily attributed to the high priority that European consumers place on their major foreign holidays, and our ability to proactively manage the balance between supply and demand."

The company's update follows a buoyant trading statement from Thomson Holidays owner TUI Travel, which on Tuesday revealed holiday sales in the UK for the past six weeks were up 8% on a year earlier, with 61% of its UK programme booked.

Thomas Cook has 18% fewer UK holidays to sell than last year, while winter bookings are 4% higher.

The business, which reports in euros, has been hit by the weakening of the pound against the euro but said underlying losses in the six months to March 31 had narrowed 28% to 193.6 million euro (£154.3m) during the traditionally loss-making winter period.

Despite concerns over soaring fuel costs and the sterling weakness, the group said it was 100% hedged for crude oil and 90% for jet fuel for the remainder of the year. Its currency needs are also 100% hedged until September.

Chief executive Manny Fontenla-Novoa said the firm was in a "very good position" for the summer.

"The rising cost of fuel and translational impact of the fall in sterling against the euro have made achievement of our euro-denominated results more difficult, but I remain confident that we will achieve our goals for this year."

Mr Fontenla-Novoa, who led a merger of the business with former Airtours firm MyTravel last year, added that the company was on track to make 200 million euros (£159.3m) in savings through the deal by the next financial year.

The group however said that it was planning for the possibility that the merger of its German airline Condor with Air Berlin - creating a major low-cost European airline - could be thwarted by regulators.

Collins Stewart analyst Andrew Fitchie added: "Overall, the risks seem to have increased for Thomas Cook despite reporting a good set of results.

"Our opinion that travel demand lags consumer demand increases the risk to next year even further."