Travel companies urged to offer cash refunds for cancellations amid Middle East conflict

Holiday companies have been reminded to offer passengers cash refunds, rather than just vouchers, when flights are unavoidably cancelled.

The Civil Aviation Authority (CAA), a body that regulates the UK’s aviation industry, has reiterated advice on cash refunds as some package holidays have been cancelled amid the conflict in the Middle East.

Companies may offer vouchers to affected holidaymakers in lieu of a cash refund, but the CAA says that customers have a right to know they are entitled to a cash refund.

It adds that people are not obliged to accept the voucher and that companies need to tell their customers that amounts held in voucher form are not Atol protected. This is because the consumer has a statutory right to a full cash refund, but not for a voucher.

Atol is a financial protection scheme set up by the CAA for package holidays that include a flight, ensuring that money will be given back to the customer if a company collapses.

Geoff Wingfield, Atol spokesperson at the CAA, said: “We recognise the challenges that travel companies are facing with the evolving situation in the Middle East.

“It is important that passengers’ holidays are protected, and we will continue to work with the industry to ensure they understand how best to support their customers.”

The CAA reminds companies that the Foreign Office is continuing to advise against all but essential travel to much of the Middle East.

Under the Package Travel and Linked Travel Arrangements Regulations 2018, customers have the right to cancel their package holiday without paying a fee in the event of unavoidable and extraordinary circumstances.

If they do cancel their holiday, companies must provide a full refund within 14 days.

The advice, aimed largely at Atol-protected companies, comes as the CAA announced that a total of 1,674 travel businesses have secured their Atol license this year.

Jet2holidays, Tui, loveholidays, easyJet Holidays and On the Beach make up the current top five licence holders, ranked by the number of sales to passengers.

Read more: The Iran war has impacted 17,000 Lastminute holidays. Here’s where travellers are going instead