The Civil Aviation Authority (CAA) has reminded travel companies they must ensure they issue refunds for cancellations in the correct manner and timescale.
CAA ATOL spokesperson Geoff Wingfield said customers need ‘confidence and clarity’ when booking, particularly in the light of the UK Foreign Office (FCDO) continuing to advise against all but essential travel to the Middle East.
Geoff 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.”
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 suppliers offer vouchers in lieu of a cash refund, consumers must be informed they are entitled to a cash refund and are not obliged to accept the voucher. Organisers should also tell consumers that the voucher is not ATOL protected if it is not applied to an ATOL protected holiday.
The CAA issued the reminder during the publication of the spring ATOL renewal update, which shows two of the top five ATOL holders have increased their licences.
The update shows 702 ATOL licences expired at the end of March. Of those, 636 have been renewed, and 26 are in the application process or yet to meet licence conditions.
In total, 1,674 businesses currently hold ATOLs. The top five in terms of passenger numbers are Jet2holidays, TUI, loveholidays (We Love Holidays), easyJet holidays and On the Beach.
Jet2, TUI and easyJet holidays’ ATOL numbers have stayed the same, while loveholidays has increased its ATOL by about 509,000 passengers and On the Beach by about 172,000.
The CAA has told travel businesses to apply to renew their ATOL well in advance of the deadline or risk being unable to take ATOL protected bookings.
Top ATOL holders as of March 2026
