Crisis-hit MyTravel (formerly Airtours) is fighting to keep its customers. The company insists that, despite accounting problems and the collapse in its share price, it is not in danger of going bust.

'We have been in business for 30 years and customers can book with us in confidence. We are still a very large group and a very profitable one. We will make a profit but not as much as expected,' said a spokeswoman. But industry sources are nervous about whether MyTravel's bond is sufficient to cover a company collapse - in other words, if there is enough money in the insurance kitty to bring travellers home if the company fails.

The rival TUI group (Lunn Poly/Thomson) has stopped selling MyTravel holidays in response to the crisis.

A MyTravel spokeswoman said: 'The fact that Lunn Poly has "deracked" us will not have much impact. They sell less than 1 per cent of MyTravel holidays. They deracked us one or two months ago for other reasons and have been waiting for any opportunity to do this again.'

Observers are now watching to see if MyTravel floods the market with discounted holidays in a bid to boost sales. But the spokeswoman denied the company would do this.

One of the problems of a dra matic share-price drop can be the impact on customer confidence which in turn can lead to the collapse of a company.

Some in the industry think that MyTravel could be the next ILG. The International Leisure Group, which included brands such as the former Club 18-30 and Intasun, went bust after a dramatic share price fall following slow-down in demand after the Gulf War in 1991.