Atol holder Jetline Travel ceased trading last week with the extent of its unlicensed business unclear, leading a senior industry source to warn “a lot of suppliers may take a hit”.
The company had 20 customers overseas and 800 forward bookings when the CAA confirmed it had ceased trading on March 6 after Carnival brands Princess Cruises, Cunard and Holland America Line announced the cancellation of “some outstanding bookings made through Jetline Holidays due to its breach of contract”.
It is understood Jetline, which traded under multiple names, had failed to pass on customer payments on schedule.
Jetline directors had been seeking to sell the business since last autumn, but offered an “accelerated” sale in February, with a transaction “to be completed upon or shortly after the appointment of administrators”.
More: Jetline Travel ceases trading as Atol holder
Jetline Travel offered for ‘accelerated’ sale ahead of cessation of trading
The company, based in Barnet, north London, sold both cruises and cheap package holidays. The cruise business attracted expressions of interest but failed to find a buyer.
It was unclear whether administrators had been appointed as Travel Weekly went to press.
Jetline held an Atol for 4,790 passengers and the CAA required it to operate an escrow account, similar to trust arrangements, which held 70% of Atol customer payments.
However, there was no pipeline protection for other payments after Jetline quit Abta in November 2020 while being investigated for its handling of refunds. The size of Jetline’s non-Atol business remains unclear, as does the volume of its non-UK business.
An industry source said: “Atol was a small part of the business. But it acted as an agent and a lot of suppliers may take a hit.” The company was also “doing a huge amount of business in the US”, having entered the market in 2019.
Company directors had sought to reposition Jetline as a cruise retailer, noting in its 2023 accounts that “selling high volumes of low-margin land holidays has become counterproductive”. The company had shrunk both its Atol and staff numbers, with employee numbers falling from 72 in early 2019 to 32 in 2023, and its Atol licence down from 12,000.
However, it hit fresh trouble when Travelzoo – which it relied on for leads – made the decision to stop working with it in March 2024 due to credit issues.
The source noted: “Selling cruise was the worst place to be operating an escrow account.” Cruise lines require payment pre-departure but Jetline “had to keep 70% of customers’ cash in escrow. It became unsustainable. The cruise lines ran out of patience.”
Alan Bowen, legal advisor to the Association of Atol Companies, pointed out: “The law of agency means the cruise lines can’t simply cancel holidays. Customers have a contract with them.”
A Carnival UK spokesperson said: “Our priority is to support guests who have future bookings with our brands to ensure they can take the holidays they planned. Jetline bookings are a mix of ‘retail’ and ‘net rate’ bookings.”
Jetline was approached for comment. The company had traded since 2000 and was a member of The Advantage Travel Partnership. Chief executive Julia Lo Bue-Said said: “A failure is devastating for the owner, staff and customers, and our thoughts are with them.”