Thomas Cook has warned that its annual profits are set to be about £30m lower than expected, its second profit warning in two months.
Earnings at its tour operator unit were £88m lower in the year to September, as people delayed booking holidays because of the prolonged heatwave at home.
It also said its bookings for this winter were 3% down on last year and suspended its dividend.
Chief executive Peter Fankhauser said it had been a “disappointing year”.
He added: “The UK was particularly hard hit with very high levels of promotional activity coming on top of an already competitive market for holidays to Spain.
“Looking ahead, we must learn the lessons from 2018 and go into the new year focused on where we can make a difference to customers in our core holiday offering.”
Thomas Cook’s underlying earnings will be £250m to the end of September, £58m lower than in 2017.
Additional charges, including disruption to flights, were partly responsible for this decline, the company said.
Despite the slump in holiday bookings, the company’s airline business recorded profit growth of £35m and its future bookings are 11% ahead of last year.
Sales of holidays to its own-brand hotels were up by 15%.
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