British tour operator Thomas Cook said turmoil in Egypt has hit recent bookings, while rival TUI Travel has slashed flights to the popular winter sun destination after demand slumped.

Thomson and First Choice parent TUI has responded to the crisis in Egypt by significantly shrinking capacity to the country and deploying most flights to other destinations, after countries, including Germany, advised holidaymakers not to travel there. Thomas Cook also said it is shifting capacity to match demand.

TUI said that while package holidays to Red Sea resorts remain on sale from the UK, demand has slumped.

Last month, Times of Malta reported that Maltese tour operators were largely unaffected by the situation in Egypt because Maltese tourists have long been wary of holidays there.

Excluding flights to Egypt, TUI, Europe’s biggest touroperator, said it has sold 29 per cent of its UK winter programme, with bookings four per cent ahead and average prices up seven per cent, resulting in sales up 11 per cent.

While package holidays to Red Sea resorts remain on sale, demand has slumped

Thomas Cook said that while it is at an early stage in the winter bookings cycle, average selling prices are up “strongly” in all markets.

It said: “Not unexpectedly, given geopolitical events and warm weather across Europe, winter trading has started more slowly than last year acrossmost markets.”