Iata is relaxing the rules which apply to financial reviews on travel agents for a full year from 1 November 2021 to 31 October 2022.
“Agents’ accounts are evaluated based on five financial ratios. Normally, all must be passed in order to score an overall pass on the financial review assessment,” advised the Travel Trade Consultancy (TTC).
“However, Iata has agreed to temporarily relax the operating and net profit tests, provided that the agent maintains positive net equity and satisfies the ‘elevated’ quick and cash cover ratios.
“The requirement to be profitable in the trading periods prior to the onset of Covid-19 has been removed.”
