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Travel company On the Beach said it expected to take a one-off charge related to the collapse of larger rival Thomas Cook.
The company said that it was assisting customers that were currently in resorts and whose travel plans would be affected.
'The board anticipates that there will be a one-off exceptional cost associated with helping customers to organise alternative travel arrangements, and lost margin on cancelled bookings,' On the Beach said.
It added that it expected to be able to recover the costs of the cancelled flights via a chargeback claim, as was the case following the collapse of Monarch Airlines in 2017.'
The one-off exceptional charge would be booked in the current financial year.
'The board is currently evaluating the potential effects of the failure on its forecasted performance for the year ending 30 September 2020, and a further update will be provided when appropriate,' On the Beach said.