The CAA said 510 of the potential 1,127 travel companies - just over 45% - were yet to apply to renew their Atol. It urged the remainder to submit renewal applications “well before” 30 September to avoid a delay to processing.

More than a quarter of applicants in March 2021 applied in the last 10 days leading up to the renewal deadline, the CAA said, adding this “created challenges for both the travel company and Civil Aviation Authority”.

The CAA said: “Whilst the Civil Aviation Authority understands the issues the travel industry is facing, it has a duty to protect consumers and make sure that it has complete and accurate financial information before processing a renewal. 
 
“As the responsible regulator and in line with the previous renewal period, this includes asking for readily available additional information to provide an up-to-date picture of businesses’ financial position. Without this information there may be a delay in the renewal process.”

It added that future changes discussed in the Atol Reform consultation “have no bearing on current licensing decisions”.    
 
“Whilst there has been speculation over recent weeks, any conditions placed on licences during the renewal period are reflective of the current licensing framework and the financial information provided.” 
 
Michael Budge, The CAA’s head of Atol Licensing, said: “We would like to thank travel companies that have already submitted their application and supporting information for renewal in good time, as well as engaging with us throughout the process.
 
“We are mindful that applicants are looking for quick decisions, but reflective of the industry’s current financial challenges, things can take longer.

"Companies that apply late risk a delay in having their Atol licence processed.”