MyTravel has been hit by poor summer bookings

The company said Mr Wilson was stepping down "with immediate effect," and would be replaced by chief operating officer Philip Jansen.

"Duncan feels his current role has come to a natural conclusion," said MyTravel chairman Eric Sanderson.

In November, MyTravel issued its second profit warning in three months, blaming weak summer bookings in the UK.

The firm said at the time that it expected to make a loss for the second half of the year.

MyTravel has been battling for survival in a difficult travel market for the last two years.

It issues a string of profit warnings last year, culminating in the resignation of former chief executive Tim Byrne in October 2002.

It won breathing space in September this year when its creditors agreed to reschedule �221.6m of debts which had been due for repayment next year to January 2007.

MyTravel has also sold off parts of the business it considers marginal in an effort to shore up its finances.