Spring ATOL Renewals: Regulator Reminds Travel Industry to Offer Cash Refunds
Summary
The UK Civil Aviation Authority has published figures from the March 2025 ATOL licence renewal process, showing 1,674 businesses are licensed under the ATOL scheme. Of 702 licences expiring on 31 March 2026, 636 have been renewed with 26 still in process. The regulator has reminded travel companies of their obligations under the Package Travel and Linked Travel Arrangements Regulations 2018 to offer cash refunds to consumers within 14 days when packages are terminated due to unavoidable and extraordinary circumstances.
“If the consumer or package organiser terminates, then the organiser must provide a full refund within 14 days.”
What changed
The UK Civil Aviation Authority has released figures from the March 2025 ATOL licence renewal cycle, reporting 1,674 businesses licensed under the ATOL financial protection scheme. The regulator has reminded the travel industry of its obligations under the Package Travel and Linked Travel Arrangements Regulations 2018 regarding consumer refunds. When packages are terminated due to unavoidable and extraordinary circumstances, organisers must provide full refunds within 14 days. If vouchers are offered instead of cash, consumers must be informed they are entitled to a cash refund, not obliged to accept vouchers, and that amounts held as vouchers are not ATOL protected.
Travel businesses should ensure their customer communication processes clearly disclose these refund rights and that any voucher offerings include the required cautionary information. Businesses are also reminded to apply for ATOL renewals well in advance of deadlines to avoid being unable to take ATOL-protected bookings. The top five ATOL licence holders are Jet2holidays, TUI, loveholidays, easyJet Holidays, and On the Beach.
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Apr 20, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
- A total of 1,674 businesses in the travel sector are licensed under the ATOL scheme according to new figures released by the UK Civil Aviation Authority.
- The regulator, which runs the ATOL scheme, reminds the travel industry that they should offer cash refunds to consumers in the event of cancellation due to unavoidable and extraordinary circumstances.
- It also reiterated advice that travel companies should apply to renew their ATOL well in advance of the deadline to allow time for their applications to be processed. The regulator, which oversees the ATOL financial protection scheme, has published the figures following its completion of the March 2025 licence renewal process.
Of the 702 ATOL licences that expired on 31 March 2026, 636 have been renewed, with a further 26 still in the application process or yet to meet licence conditions.
Jet2holidays, TUI, loveholidays, easyJet Holidays and On the Beach make up the current top five licence holders. The latest top 10 ATOL holders report is available on the UK Civil Aviation Authority website.
Geoff Wingfield, ATOL spokesperson at the UK Civil Aviation Authority, said:
“The continued demand for ATOL protected holidays shows that consumers place real importance on having confidence and clarity when they book their trips.
“We recognise the challenges that travel companies are facing with the evolving situation in the Middle East. It is important that passengers’ holidays are protected, and we will continue to work with industry to ensure they understand how best to support their customers.”
The Foreign, Commonwealth, and Development Office is continuing to advise against all but essential travel to the Middle East. Under the Package Travel and Linked Travel Arrangements Regulations 2018, consumers have the right to terminate the package without paying a fee in the event of unavoidable and extraordinary circumstances. If the consumer or package organiser terminates, then the organiser must provide a full refund within 14 days.
If offering vouchers to affected consumers in lieu of a cash refund, package organisers should tell consumers that they are entitled to a cash refund and are not obliged to accept the voucher. Organisers should also tell consumers that amounts held in voucher form are not ATOL protected.
The UK Civil Aviation Authority also continues to ask travel businesses that they should apply to renew their ATOL well in advance of the deadline because of the time required to analyse and process applications, and for the applicant to put any required conditions in place.
Businesses that fail to allow reasonable time to apply by the deadline risk being unable to take ATOL protected bookings.
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