Package holiday provider Jet2 said that it would make a loss of up to £385m for the full year after it cancelled all trips until 23 June due to Covid-19.
The firm took the decision to scrap all holidays up to that point due to the “uncertainty” regarding the resumption of international travel.
As a result of ongoing travel restrictions, the FTSE 250 firm said it was difficult to determine what this summer season would look like.
However, despite the downturn, Jet2 said it still had a strong liquidity position of £1bn, double what it had in reserves the year before.
International travel is due to restart again on 17 May, but as of yet airlines and travel firms do not know to which locations people will be able to travel.
The government has announced that it will operate a traffic light system of different restrictions, but is yet to provide information as to which countries will come under each bracket.
It was this lack of clarity that prompted Jet2 to cancel its trips for the first part of the summer.
Despite the prediction, shares in the firm rose 2.1 per cent as markets opened.