Andrew Flintham, managing director of Tui UK and Ireland, made the announcement on Saturday evening hours before new rules came into force for UK travellers.
The new rules involve a 14 day quarantine for travelers returning for Spain, leaving TUI with no option to cancel trips.
Mr Flintham, said the company would contact customers to arrange refunds or rebookings.
Customers currently on holiday will be able to return on their intended flight home, he said.
“We’re incredibly disappointed that we didn’t get more notice of this announcement, or that this decision wasn’t made yesterday, as many Brits travel on holiday at the weekend.
“We also look to understand why quarantine has been issued for a whole country, including the Canary Islands and Balearic Islands, when the travel advice isn’t aligned (only applying to mainland Spain). It demonstrates why clear regional travel corridors need to be considered.
“The health and safety of our customers and colleagues is always our highest priority and welcome travel advice that protects those that holiday with us.
“However, the UK Government must work closely with the travel industry as this level of uncertainty and confusion is damaging for business and disappointing for those looking forward to a well-deserved break.”
British Airways and Easyjet still plan to continue flights but the UK government have warned against ‘all but essential travel to Spain.’
Easyjet have said that anyone who wants to cancel their flight can change it to a different one at a later date without charge or receive a flight coupon due to the circumstances.
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