Travel republic

We have just booked a short break to Portugal in June for 3 nights incl of hotel, we had confirmation, but now we have received an email stating that the airline wants an increase on the price confirmed, are they legally allowed to do this?, I thought they had entered into a contract.

Please advise accordingly.

Kind Regads

Hi Again, well situation as follows, credit card details taken, but flight provider Ryanair, did not confirm transaction, and then asked for another £80 pp.
Travel republic agreed that they can cancel without any penalties, and rightly so but they will keep the hotel reservation and look for alternative flights.