The authority said on Thursday (10 March) that 36% of companies due to renew in March hadn’t yet applied. It is urging firms to get their applications in as soon as possible "to avoid a delay to licence terms being offered".

"Any travel companies concerned about their upcoming renewal should submit their application and supporting information as soon as possible so the Civil Aviation Authority can discuss their terms of renewal and support them through the process," said the CAA.

"In assessing an application, the Civil Aviation Authority considers the financial resources and arrangements available to all travel companies, and therefore needs to closely assess those businesses applying that need to find additional support to continue to trade, but this can only be done if those Atol holders discuss their position openly and in a timely manner."

The CAA added it understood the challenges the industry faces, and would continue to work closely with stakeholders to get their renewals over the line.

However, it warned: "The Atol scheme exists to provide consumers with protection, and so it must make sure that it has complete and accurate financial information before considering a renewal."

Additionally, the CAA reiterated renewals would be considered on the existing Atol framework, stressing potential changes to the scheme discussed in its reform consultation late last year would have "no bearing on current licensing decisions".

Michael Budge, the CAA’s head of Atol, said: “While the industry is on the road to recovery, we understand the challenges that travel companies continue to face and are working closely with them to support their licence renewals.

“Applications must be thoroughly assessed and where licence conditions are required, these must be met before the new licence can be granted. Businesses concerned about their renewal should submit their applications as soon as possible for us to work with them through any issues and avoid delays to their ability to sell package holidays.”