Travel firm squeezed as holidaymakers hang back
TUI, which has around four million UK customers, said disruptions from Iceland's volcanic ash cloud also affected trading as it warned of full-year results at the lower end of City hopes.
UK bookings have fallen 2 per cent since its last update in May and the firm now has more holidays to give away in the "lates" market, squeezing profits.
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Hide AdTUI, which is also braced for a hit from the pound's recent fightback against the euro, said the uncertainty was likely to linger as would-be holidaymakers waited longer before booking.
Chief executive Peter Long warned: "It remains difficult to predict how the later booking pattern will change over the next 12-18 months in the light of the current economic environment."