Europe's leading travel operator Tui has seen a 10% fall in revenue from summer holiday bookings made by UK customers, who have become more cautious due to the Iran war.
Overall, it noted a shift in demand from Eastern to Western Mediterranean destinations, with customers also booking trips closer to departure dates.
Tui is cutting the number of seats it purchases from its airline partners by 4-5% over the summer, while maintaining its own flying programme at current levels.
While it is reducing seats, chief executive Sebastien Ebel said he does not expect jet fuel shortages over the coming weeks.
There have been concerns that unless the Strait of Hormuz - a key route for oil and liquefied natural gas - reopens soon, there could be physical shortages in some areas in the coming months.
