On the Beach has created 26 million new “placing shares” which represents about 19.9% of company.

The OTA said that the new cash would give it “even greater resilience, flexibility and firepower through the current downturn” as the travel industry battles to combat the impact of the Covid-19 pandemic.

“The directors believe the additional headroom will allow the group to simultaneously increase investment in its digital platforms; continue to drive brand through investment in online and offline marketing activity; improve conversion with attractive low deposit schemes; and react to commercial opportunities in the UK and internationally,” said On the Beach in a statement to investors.

The company added in a trading update that the “vast majority of bookings” taken in the first half of the year would not see passengers travel as planned, costing On the Beach an “exceptional charge” of around £35 million.

“The group’s theoretical stress test of airspace being closed until the end of September 2020 has become increasingly plausible,” it added. “This implies greater pressure on all travel companies and a more profound reset of the competitive landscape.”