The decision to extend licences comes into effect on 31 March, and an email communicating this decision will be sent out to all applicable Atol holders then. 

The aim is to enable Atol holders affected by the coronavirus crisis and the CAA to focus resources on looking after affected consumers. 

The CAA said it was “acutely aware that the situation is changing at a fast pace”, and so the ability for Atol holders to meet the information requirements by the licensing deadline in the current environment will be kept under review. 

“To this end, the CAA will maintain contact with all Atol holders in April whose licence would have ordinarily expired at the end of March.”

If a March-renewing Atol holder has not yet submitted its renewal application, it must do so by 31 March for the above to apply, otherwise their Atol will lapse. If an Atol holder has told the CAA it does not intend to renew its Atol then this decision does not apply to that Atol holder. 

Michael Budge, head of licensing operations for Atol, said: “Given the exceptional and unprecedented circumstances, we recognise that this is the right course of action and the decision has been taken that all Atol licences expiring 31 March 2020 will now have their licence period extended until 28 April 2020.

“This allows Atol holders to focus on their customers and manage their own financial position. In addition, the UK Civil Aviation Authority has refocused its resources to manage the issues arising from this complex situation.

“Extra time will enable industry to support customers in a highly challenging period of uncertainty and provide time to assess matters in order to meet the terms of their renewals.

“It will also give the UK Civil Aviation Authority the time to appropriately assess applications where we need to complete assessments.

“Extending the deadline is highly unusual, and we will keep this under review. We will also keep this decision under review as the situation develops and the potential impact is better understood. We would like to thank the industry for working with us.”