Travel giant Thomas Cook says there is “robust” demand, reporting strong summer trading and early sales for next winter leaving it on track to meet its expectations this year.

The firm has also trimmed its capacity – meaning it has fewer holidays to sell in the heavily-discounted “lates” market – which helped boost average UK prices by 3 per cent.

It said: “We have not seen any effect on our trading to date from the current economic conditions.

“We continue to believe this can be primarily attributed to the high priority that European consumers place on their major foreign holidays, and our ability to proactively manage the balance between supply and demand.”

The company’s update follows a buoyant trading statement from Thomson Holidays owner TUI Travel, which on Tuesday revealed holiday sales in the UK for the past six weeks were up eight per cent on a year earlier, with 61 per cent of its UK programme booked. Thomas Cook has 18 per cent fewer UK holidays to sell than last year, while winter bookings are four per cent higher.

Soaring

The business, which reports in euros, has been hit by the weakening of the pound against the euro, but said underlying losses in the six months to March 31 had narrowed 28 per cent to 193.6 million euro (£154.3m) during the traditionally loss-making winter period.

Despite concerns over soaring fuel costs and the sterling weakness, the group said it was 100 per cent hedged for crude oil and 90 per cent for jet fuel for the remainder of the year. Its currency needs are also 100 per cent hedged until September.

Chief executive Manny Fontenla-Novoa said the firm was in a “very good position” for the summer.

“The rising cost of fuel and translational impact of the fall in sterling against the euro have made achievement of our euro-denominated results more difficult, but I remain confident that we will achieve our goals for this year.”