The Air Travel Trust (ATT) has today published its annual report and financial statements for the year ended 31 March 2014, which reveal the fund has benefited from a second year with low levels of ATOL failures.
The report shows that the ATT received £51.7m in ATOL Protection Contributions (APC) from 21.5m passengers during 2013/2014, up from £46.6m from 19.2m passengers in the previous year. The report also shows there were 13 ATOL failures during 2013/2014, representing an estimated cost to the ATT of £3.8m. This was up from 11 failures in 2012/2013, at a cost of £0.8m.
As a result, the ATT fund is now £54.7m in surplus. This follows several years with few ATOL failures, and the implementation of key reforms to the ATOL scheme that has increased its coverage through the introduction of Flight-plus in April 2012.
Michael Medlicott, Chair of the Air Travel Trust, said:
“The last 12 months has continued to be a challenging environment for travel operators, however despite this, the number of ATOL holder failures has remained low, with the total cost easily being managed from current reserves.
“Furthermore during this period, the CAA has introduced new and innovative ways to help consumers continue their holiday, if and when a travel operator collapses, which has helped to significantly lower claim costs in some cases.
“Both these factors have enabled the Trust to increase its surplus during the year by £36.7m, from £18m to £54.7m, and consequently it is no longer reliant on its borrowing facilities.
“This development, along with the increasingly established ATOL certificate, should continue to reinforce the message to consumers that they are financially protected and help grow confidence in ATOL protected holidays over the coming year.”
ATT report and financial statements – key figures at a glance
• Status of the ATT fund as of 31 March 2014: £54.7m in surplus
• Status of the ATT fund as of 31 March 2013: £18m in surplus
• Total amount received in ATOL Protection Contributions (APC): £51.7m
• Total protected passengers 2013/2014: 21.5m
• Number of ATOL holder failures: 13
• Number of protected passengers repatriated: 494
• Number of protected passengers entitled to a refund: 10,373
• Estimated cost of failures to the ATT: £3.8m
The full Air Travel Trust annual report and financial statements for the year ended 31 March 2014 can be viewed at ATT Report 2014
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Notes to Editors
1. The Air Travel Trust (ATT) is the primary source of funding when an ATOL holder fails. It is administered on behalf of the ATT by the Civil Aviation Authority (CAA).
2. One of the CAA’s principal responsibilities is to manage the Air Travel Organisers’ Licensing (ATOL) scheme, which provides protection to holidaymakers from being stranded abroad or losing money when purchasing air holidays and flights from licensed tour operators. If an ATOL holder fails, the CAA is responsible for ensuring customers are either repatriated back to the UK or receive a refund of payments made.