Chief executive Fritz Joussen said for UK travellers heading to Europe the weaker pound means prices will go up, but insisted demand from British holidaymakers had not been hit by the decision to leave the EU.

Since the vote in June the pound has weakened against the euro by around 10%.

"Despite the weaker pound, the desire of Brits to go on holiday has not been affected," said Joussen.

"There’s been a very strong performance from the UK, bookings have risen very strongly."

Asked to explain the magnitude of potential price increases, Joussen said: “Our cost position is good because we are 60% all-inclusive so I think we will be able to deliver the same value to our customers.”

He continued: “We are talking a high single-digit percentage. It will not be that bad.

"Some price increases will be competed away. Capacity has to be filled."

Tui now expects brand turnover growth of around 3% in the current financial year, instead of the 5% originally predicted.

However, Tui confirmed its target for underlying profit growth of 10% this year, with the shift away from North Africa and Turkey to destinations such as Spain driving up prices there.