Funds were used to fly home 282 fully-covered passengers, while a further 16,608 who were yet to travel when their company collapsed in the year ending March 31, 2017.

A total of 19 companies failed during the period with the largest being All Leisure Holidays. This is almost double the 10 companies that failed in the previous year.

The figures were released by the Civil Aviation Authority and also show that the number of Atol-protected holidays fell after five years of steady growth to 24.9 million for the period.

They also reveal the fund was £145 million in surplus for the year after receiving £62.3 million in Atol Protection Contributions. This is £6 million more than the previous year.

Michael Medlicott, chair of the Air Travel Trust, said: “In the last 12 months the UK travel industry has faced a number of challenges, including unfavourable currency exchange movements, limited economic growth and a reduction in consumer confidence.

“Furthermore there are a number of on-going geo-political situations, which are having a significant impact on key destinations and these continue to present concerns for holidaymakers.

“In the light of all these factors, the travel market has held up very well, which reflects the high priority consumers attach to their holidays.

“I am also pleased that consumers continue to have trust and confidence in the Atol brand.”