Thomas Cook will retain ATOL protection for seat-only sales despite dissatisfaction at the increased cost of the ATOL Protection Contribution (APC) from next month.
The group had threatened to withdraw flight-only sales from the ATOL scheme because of the increase.
Chief executive Manny Fontenla-Novoa warned in February: “We could remove seat only. We could look at depackaging.”
Thomas Cook repeated it was considering the option in July, following confirmation of the rate rise to £2.50.
But Thomas Cook director of government and external affairs Andy Cooper said: “We see no reason to change at the moment. It is better for customers to be protected.”
However, the group may return to the issue if reform of the ATOL scheme falls short of what Cooper called “appropriate extension of the scope of protection”.
Ahead of meeting the transport secretary in February, Fontenla-Novoa said: “It’s us and TUI Travel that pay for consumer protection. Every £1 [on the levy] puts our costs up £5 million.”
APC will rise from £1 to £2.50 on October 1, following completion of the autumn ATOL renewals on September 30.