ABTA and Ministers have dismissed a front page story in a leading UK Sunday, which says the warning is part of contingency plans being drawn up by the government to prepare for a no-deal scenario.
Indeed ABTA has issued a statement in a bid to reassure the British public.
“Number 10 has said that the content of the report is categorically untrue,” said a spokesman.
“The European Commission has said that even in a no-deal scenario, flights will still operate between the UK and EU, and a visa is not required.
“ABTA is providing holidaymakers and travellers with advice about Brexit and travel, including on pet passports and driving licences, which can be found at abta.com/brexit.”
The Sunday newspaper report had said there are fears a no-deal Brexit could see UK-based airlines grounded because they would lose their operating licences for the 27 EU countries.
The report came after it was confirmed that UK travellers will be charged 7 Euro to visit the EU from 2021.