Thomas Cook said it expected the unrest in Egypt and Tunisia to wipe around £20m off its second quarter profits with holidaymakers being advised to stay away from the region.
Thomas Cook, which is Europe's second biggest tour operator, said revenue rose by seven per cent to £1.81bn in the first quarter of its fiscal year to end December.
The group made an operating loss of £37.3m during the period, a 10 per cent reduction in the loss it made during the same period the previous year. Tour operators usually make a loss in this traditionally quiet quarter.
Thomas Cook, which usually flies around a million passengers to Egypt each year, has continued taking British holidaymakers to Red Sea resorts including Sharm el Sheikh and Hurghada but has cancelled flights into Luxor.
Rival TUI Travel said last week the unrest in Egypt and Tunisia could wipe up to £30m off its profits with holidaymakers being advised to stay away from the region.