The OTA said it had seen customers move away from more unpopular destinations in the eastern Mediterranean to those in the west of the region.
Group operating profit jumped from £4.8 million to £7.4 million. Revenue climbed from £29.1 million to £35.5 million in the six months to the end of March, giving it a margin of 20.8%.
On The Beach said it was on track to meet its expectations for full-year 2016.
Chief executive Simon Cooper said: "The business has delivered impressive financial results in the first half that highlight the resilient and flexible nature of our model.
"I am pleased that we continue to make strong progress in delivering our strategic objectives.
"The terrorist acts in late 2015 and early 2016 created uncertainty and volatility in the holiday market, however the business has adapted to changes in typical consumer practices by focusing on securing incremental supply in the Western Mediterranean, enhancing margin, delivering operational efficiencies and retaining an efficient level of spend in driving demand to site.
"In the absence of any future negative market events, we anticipate stronger consumer confidence in the second half of the financial year, buoyed by a strong lates market, and are on track to meet our expectations for the full year."
