Shares in tour operator MyTravel tumbled 8% today after it warned that profits would be hit by the recent UK security alert and attacks in Turkey and Jordan.

MyTravel, which owns Going Places travel agencies and also has an aviation division, said it expects pre-tax profit for the full year to come in at £40-45m on operating profit of £55-60m. This compares to initial expectations of operating profits of £75-£85m.

MyTravel said its UK businesses were no longer expected to return to profitability this year.

"Despite substantial and continuing progress in turning around the business, the effect of recent events is that the UK performance is expected to improve from a £27.4m operating loss in 2005 to a £10-15m loss this year," MyTravel said in a statement.

It said the terror alert had "compounded an already difficult summer". Shares in travel companies and firms connected to the industry fell in the wake of the news.

Last month, heightened security measures were put in place across British airports after news of an alleged plot to blow up flights from the UK to North America emerged. British Airways has already said that the disruption cost it £40m, while the delays cost budget carrier easyJet £4m.

MyTravel said trading conditions had already been difficult due to the hot weather in the UK and the World Cup tournament, which encouraged potential customers to stay at home.

The rise of low-cost airlines and the internet has also been blamed for taking customers away as do-it-yourself holidays can work out cheaper than a package tour.

MyTravel said UK winter trading had started slowly and was also affected by security concerns. Winter charter holiday bookings are down 11% on 10% less capacity.

Shares fell 16.25p to 184.5 today. Rival First Choice was also affected. Its shares were down 4% or 9.25p to 207.5p.