Tui has reduced its summer holiday schedules amid growing concerns of a third coronavirus wave in Europe.
The travel company has cut it's schedule by a further 5% and new covid-19 restrictions have been brought in across the continent.
It is now offering just 75% of its pre-pandemic capacity starting from July, down from a planned 80% in the summer months.
Tui chief executive Fritz Joussen said the company must 'retain sufficient flexibility' to increase capacity 'if our customers' demand recovers more quickly when the travel restrictions are lifted.'
He said: "We continue to see a strong pent-up demand and desire to travel among our customers.
"We look to the coming seasons with optimism.
"We're seeing strong demand for next summer in the UK with bookings up some 120%, and May 2022 in particular is already up by more than 150%."
Around 2.8 million people are booked on summer trips for this year, which is down 60% compared with the same point in 2019.
Because of this, average prices are up 22%, due to the rise in the proportion of package tours being booked.
Fears of a third wave of Covid-19 are growing across Europe and Boris Johnson has said he fears it 'will wash up on our shores.'
Addressing the nation Boris Johnson said: "If I look at problems that we face at the moment, in addition to continuing health care threat, we must be realistic there is another wave building in the European continent."
He added: "We will see it wash onto our shores I see no doubt. The extent to wish it affects us, will depends on the strengths of the fortification we have now built against it."
Germany and France have imposed fresh restrictions, while there is speculation that the UK could impose restrictions on people returning from much of the continent once leisure travel resumes.
Many travellers who booked trips due to begin before May 17, the earliest date for the resumption of foreign leisure travel, have rescheduled their holiday for a later date.
The news of a reduction in Tui's summer holiday offering comes after the company revealed it plans to close 48 more retail stores in the UK.
It announced in July 2020 that 166 shops closed due to the virus crisis would not reopen, which was nearly a third of its total.
