ATT protection fund swells to £355m Ian Taylor


The Atol Protection Contributions (APCs) on package bookings swelled the Air Travel Trust (ATT) to a record £341 million at the end of March and to £355 million last week, according to the trustees’ report for the 12 months to March. The size of the balance led


the trustees to dispense with renewing a bank overdraft facility of £75 million, saving £310,000 in annual bank charges. The trustees report they


allowed the facility to lapse in May as it “was no longer considered necessary to provide liquidity”. The trust fund, which underwrites Atol consumer financial protection


through the £2.50 APC on every package, increased by more than £79 million on the previous year’s £262 million – itself a record. However, the CAA, which


administers the trust, paid £3 million of this in service charges on qualifying bookings to Atol Accredited Bodies and franchises in recognition of “the benefits provided to the trust and to consumers”. The trust is no longer backed


by insurance, which has not been renewed since the payout following the collapse of Thomas Cook in September 2019. However, the trustees note the


ATT retains the support of the government, noting: “To the extent that assets may be insufficient to


Late sales build as trade split on UK heatwave impact


Travel Weekly reporters


Agents reported the lates market remained strong this week, with some increased interest in 2027 – and a range of views on the impact of the heatwave. John Sullivan, Advantage Travel


Partnership commercial director, said members continued to see growth in June, with sales up 5% on last week. “Warm weather at home


can encourage travellers to seek more of the same or conversely escape the heat,” he noted. The Travel Network Group


commercial director Katharina Peck said trading had been “slightly


4 25 JUNE 2026


softer”, largely because of the weather and sporting events, but “heatwaves typically have only a temporary impact”. Underlying demand remained


resilient, particularly across late summer and beyond, she said, adding: “Long-haul demand remains stable, with strong forward interest, particularly into 2027. “We continue to see more than 50% of bookings being made for travel within the next nine weeks.” Paul Waters, Premier Travel


managing director, said: “Customer confidence is strengthening, with more enquiries and conversions across short and long-haul.”


Should a large


Atol holder fail . . . the trustees’ expectation is the government will provide extra support


meet the demands on the ATT should a large Atol holder fail . . . the trustees’ expectation is that His Majesty’s government will provide additional financial support. “That expectation is based on


the support provided to the ATT over many years and assurances previously provided by the secretary of state for transport.” The report notes the first


quarter of 2026 saw a 2.4% decline in the number of Atol bookings, despite total Atol licence numbers hitting a record high. The decline came despite the CAA reporting record aviation passenger numbers in the quarter, “with over one million additional passengers travelling to western Europe”. Only nine Atol holders failed in the 12 months to March at a cost to the fund of just over £1 million. Four were small Atol holders licensed for a maximum of 500 passengers, and three were members of Atol franchises with responsibility for refunding consumers. Two Atol holders have failed


since March at an estimated cost of less than £100,000.


Brighton Beach


He noted Greece, Egypt and


Turkey saw “significant increases” and said the hot weather had “prompted some last-minute bookings”. Alistair Rowland, Blue Bay Travel


chief executive, predicted a quick bounce-back for Egypt, Turkey, Cyprus and Malta – destinations which had struggled since the start of the conflict in the Gulf. He expects a busy July and


August for the trade and a potential “price bloodbath” for August and September departures as tour operators compete to fill remaining eastern Mediterranean capacity. Emma Collis, managing director at Protected Trust


Services, said trading remained “steady”, with some members noting more customers looking for winter 2026 and spring 2027. Inspire Group is seeing its


“strongest-ever season” for late bookings. “The impact of the World Cup has been more muted than anticipated, and demand for late bookings has surged,” said chief executive Lisa Henning. Dawson & Sanderson


corporate director Judith Alderson said: “Summer 2026 short-haul business continues to be popular as families take advantage of free child places. We’ve also seen a good uplift for 2027 short-haul.”


travelweekly.co.uk


PICTURE: Shutterstock/Melanie Hobson


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