THE number of air travellers protected by ATOLs fell by 5.7% in the year to March 2006, compared with a 1.6% increase in the 12 months to March 2005.
But a 5.5% rise in the average holiday price to £525 meant the overall turnover of ATOL-holding companies dropped by just 0.4%.
The figures, published by the Civil Aviation Authority, show a fall in the proportion of leisure travellers with financial protection to 60% of the total in the year to March, down from 61% in a similar period to September 2005.
The CAA estimates 18.3 million air passengers travelled without ATOL protection over the year.
However, the number of firms providing ATOL protection increased to 2,520.
CAA consumer protection group deputy director David Moesli said: “The figures reflect planned reductions in holiday capacity by some tour operators.
“The number of people enjoying ATOL protection remains fairly constant at around 27 million a year.” The market share of the top four groups also remained static at 46%.
Yet consolidators saw an 11% drop in ATOL-protected sales, a loss of 500,000 passengers, reflecting the increase in direct sales by airlines.
The figures appear in the latest issue of ATOL Business, covering carryings for winter 2005/06 and authorisations for summer 2006.
The £28 rise in average prices over the past year follows a rise of £26 the year before, due mainly to rising fuel costs.
Projected passenger numbers for the six months to October suggest a slight increase of 0.3% year on year, but a rise in revenue of 5.6% due to higher prices.
The CAA remains hopeful the Government will replace the current bonding system with a consumer protection charge of £1 per booking on all ATOL-protected holidays, but the move has been delayed, pending a Court of Appeal decision.