ATT protection fund swells to record £355m as trustees clear bank debt

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 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.