With the growth of higher-margin destinations like Turkey and Egypt failing to offset the pressure on Spain’s margins, Thomas Cook Group offered a cautious full-year forecast.

The company said it was continuing to upgrade its offering while performance growth in Spain showed signs of faltering.

“We continue to experience margin pressure due to a highly competitive market for Spanish holidays,” said CEO Peter Fankhauser. “While we have seen good growth to higher-margin destinations such as Turkey and Egypt, this has not been enough to fully offset the margin pressure which has largely impacted holidays to Spain to date.”