Thomas Cook under a cloud after tough summer

Anxious stay-at-home Britons triggered a second profit warning from a major tour operator in as many days today as Thomas Cook joined Thomson Holidays rival TUI Travel in the doldrums.

Thomas Cook said UK trading was "softer than expected" with a 2% fall in bookings during the last four weeks and the firm is being forced to give away more holidays in the cheap 'lates' market.

Like TUI - whose recent bookings also fell 2% - the operator blamed an "uncertain" climate, good weather and the World Cup for the trading pressures as well as disruption from Iceland's volcanic ash cloud.

Average prices are 3% higher but have not risen by as much Thomas Cook previously hoped because of the weaker booking trends in May and June - leaving expected profits at the lower end of market hopes.