Tui Group saw its share price fall by nearly a fifth earlier as the travel agent cut earnings guidance for its full-year results.

Blaming a weaker than expected performance during the hot weather last summer and a weak pound, the company said it could no longer stand by its previous guidance that promised a ten per cent increase in underlying EBITDA over the three years to the 2020 fiscal year.

Shares fell 18 per cent, to €11, in response.

The company now expects EBITDA for the year ending in September to remain broadly unchanged from the €1.17 billion it made last year.

The company admitted that, despite holiday bookings remaining broadly in line with last year, its margins are have not kept pace.

More information is expected with Tui Group reveals its full results on February 12th.

The company blamed sector headwinds including “extraordinary hot weather” last summer, the continued weakness of the pound and a shift in demand from western to eastern Mediterranean destinations as the cause for its weaker margins.