What is airline insolvency protection?

How does UK ATOL protection work?

Insolvency protection is not the same thing as a refund policy. A refund policy is a rule inside the contract you buy, while an insolvency protection scheme sits outside that contract and exists because the seller may not be around to honour it. The glossary entry on refund versus travel credit covers the contractual side.

In the United Kingdom, ATOL protection is administered by the Civil Aviation Authority (CAA), which publishes two separate sets of material: requirements and resources for travel companies and tour operators, and a consumer side that the CAA labels protection for your holiday. [1] For businesses, the guidance covers whether a business needs an ATOL, the types of ATOL available, the ATOL financial criteria a business has to meet, and how to renew an ATOL. [1] The CAA also publishes ATOL forms, bonds and policy guidance, and material on ATOL compliance. [1]

The scheme has a funding backstop rather than a single insurer: the Air Travel Trust (ATT) is described by the CAA as the primary source of funding when an ATOL holder fails. [1] That means the question for a traveller is not only what the airline or organiser promised, but whether the business selling the arrangement was inside the ATOL system at the time of booking.

How do you check whether a company is ATOL protected?

The CAA's Check an ATOL service is a search you can run against a business name before you pay. [2] It returns whether a business holds an ATOL or is a member of an ATOL accredited body. [2] Working through it in order helps:

• Search the business to see whether it holds an ATOL or belongs to an ATOL accredited body. [2]
• Check the list of companies that have not renewed their ATOL, since a lapsed registration is a different situation from a business that never held one. [2]
• Read the ATOL reports, which rank the largest ATOLs by the number of public sales they are authorised to make. [2]

The same part of the CAA site is also where claims are started, through a Make an ATOL Claim route. [2]

What happens when an ATOL holder fails?

When an ATOL holder fails, the Air Travel Trust is the primary source of funding. [1] The CAA keeps a dedicated section of its ATOL material for travel industry ATOL holder failure information, including information for companies affected by the failure of an ATOL holder. [1] Because the failure is handled as an ATOL event rather than as an ordinary customer complaint, the practical first steps are to confirm the business's ATOL status and then use the claim route the CAA publishes. [2]

Exceptions and limits

• It follows the seller. ATOL material applies to businesses that hold ATOLs or are members of an ATOL Accredited Body, so the check has to be made against the specific business you are paying. [2]
• Registration can lapse. The CAA separately lists companies that have not renewed their ATOL, which means a business can still appear in CAA material without a current ATOL. [2]
• It is a UK scheme. ATOL protection is administered by the UK Civil Aviation Authority, and the Air Travel Trust is the funding source when an ATOL holder fails; arrangements sold outside that system are outside its reach. [1]
• General consumer law sits alongside it. For problems that fall outside ATOL, UK consumer law protects consumer rights when buying goods, services or digital content, whether remotely or in person. [5] Free advice helplines can refer a complaint to local Trading Standards Officers, who may then investigate, and can share complaint information nationally with enforcement authorities and regulators including Trading Standards and the Competition and Markets Authority (CMA). [5]
• Who to call, by nation. In England and Wales the consumer helpline is Citizens Advice; in Scotland it is Advice Direct Scotland; in Northern Ireland it is Consumerline. [5] An ombudsman may be able to resolve a complaint without going to court, and the Ombudsman Association can point you to the right scheme for an industry. [5] For problems buying from an EU country, the route given is the UK International Consumer Centre. [5]

Passenger rights that arise from disruption rather than from a business failing, such as cancellation and delay duties, come from a different set of rules; the guide to EU261 and UK261 air passenger rights covers those. The airline's own commitments are set out in its airline contract of carriage.

Frequently asked questions

How do I check whether a travel company is ATOL protected?

Use the Civil Aviation Authority's Check an ATOL search, which shows whether a business holds an ATOL or is a member of an ATOL accredited body. [2] The same area lists companies that have not renewed their ATOL. [2]

Who provides the money if an ATOL holder fails?

The Air Travel Trust is the primary source of funding when an ATOL holder fails, according to the Civil Aviation Authority. [1]

Where do I start an ATOL claim?

The CAA publishes a Make an ATOL Claim route within its Check an ATOL pages. [2]

Where can I get consumer advice that is not about ATOL?

GOV.UK lists helplines by nation — Citizens Advice in England and Wales, Advice Direct Scotland, and Consumerline in Northern Ireland — which can refer complaints to Trading Standards and share information with regulators. [5]

What if I bought from an EU country?

For problems buying from an EU country, GOV.UK directs consumers to the UK International Consumer Centre. [5]

Related pages

Glossary: all frequent flyer terms, refund vs travel credit, airline contract of carriage. Guide: EU261 and UK261 air passenger rights.

Sources

Sources checked on 18 October 2026. It covers UK ATOL protection only; insolvency protection schemes in other countries, travel insurance, card chargeback rules and EU or UK flight delay and cancellation rights are not covered here.

1. ATOL protection, UK Civil Aviation Authority, checked 18 October 2026
2. Check an ATOL, UK Civil Aviation Authority, checked 18 October 2026
3. Consumer rights, GOV.UK, checked 18 October 2026