TUI has cancelled all its flights and holidays to Spain up until August 28 on the mainland and August 23 on the Canary and Balearic islands.
People already abroad will be able to return.
The flights and holidays company said that the cancellations are due to travel restrictions imposed by the UK Foreign and Commonwealth Office, which is advising against all but essential travel.
A company spokesperson said: “Due to the continued UK Foreign Office advice against all but essential travel to all areas of Spain, TUI UK has extended holiday cancellations to mainland Spain up to and including Friday August 28 2020 and the Balearic and Canary Islands up to and including Sunday August 23 2020.
“All affected customers will be able to amend their holiday for free and receive a booking incentive or cancel and receive a full cash refund.
“Due to the ongoing uncertainty, customers due to travel to all areas of Spain before Monday August 31 can amend for free and receive an incentive up to £500, or cancel and receive a full cash refund.
“Customers currently on holiday will be able to continue their holiday as planned.”
The UK introduced a 14 day self-isolation period for anyone arriving from Spain on June 27 and despite pressure from Spanish authorities the restrictions remain in place.
The current official UK travel advice is: “The FCO advise against all non-essential travel to Spain, including the Balearic and Canary Islands, based on the current assessment of COVID-19 risks in the country.”