In a trading update, the OTA said it was “evaluating the potential effects” of Cook’s failure on the business’s full-year performance.

Cook collapsed into liquidation during the early hours of Monday morning (23 September) with around 150,000 passengers overseas.

“The board anticipates there will be a one-off exceptional cost associated with helping customers to organise alternative travel arrangements, and lost margin on cancelled bookings,” said the OTA.

“The group expects to be able to recover the costs of the cancelled flights via chargeback claim (as was the case for the Monarch failure in 2017). This one-off exceptional will 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 will issue a full-year trading update on 22 October ahead of its preliminary results announcement on 27 November.

The business added it is assisting customers currently in resort and whose travel plans will be affected by Cook’s collapse.