Covid-19 causes collapse of 21 travel companies
More than 20 ATOL holders have already collapsed this year due to the Covid-19 pandemic at a total cost to the Air Travel Trust Fund of around £33 million.
The Air Travel Trust has just £35 million left in the pot after paying out £250m following the collapse of Thomas Cook last year.
As it published its accounts for the year to March 2019 today, the Civil Aviation Authority, which manages the Fund confirmed Thomas Cook collapse – which happened during the 2019/2020 financial year – was the biggest failure since the creation of the ATT.
So far this year, a further 21 companies have failed, most of which were as a direct result of Covid-19, according to the CAA.
However, it said that it still had £35m in cash reserves plus access to a £75m loan. If this is insufficient, it expects the government to provide additional financial support.
"That expectation is based on the support provided by HMG (Her Majesty’s Government) to the ATT over many years, recent written assurance provided by the Secretary of State for Transport, and the Trustees’ view as to the obligations on the UK to implement the Package Travel Directive effectively," it said.
The commercial borrowing facilities currently expire in May 2021 and the trustees anticipate renewing this facility at that time, it added.
For the year to the end of March 2019 the Air Travel Trust Fund raised £65.7m through a £2.50 passenger levy, but the CAA said that during the first six months of the pandemic income levels have fallen by two thirds.
Neverthelss, it said the ATT has ‘adequate resources available to continue in operational existence for the foreseeable future’. It said it could survive at least another 12 months.
By Linsey McNeill, Editor (UK)
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Qatar Airways offers flexible payment options for European travellers
Airlines suspend Madagascar services following unrest and army revolt
Digital Travel Reporter of the Mirror totally seduced by HotelPlanner AI Travel Agent
Strike action set to cause travel chaos at Brussels airports
All eyes on Qatar as Qatar Airways leads a season of global events