The Air Travel Trust has extended ATOL protection for new refund credit notes issued up to 31 March 2021.
The Civil Aviation Authority said this means consumers whose package holiday bookings are cancelled will be able to accept a refund credit note, however consumers still remain entitled to a cash refund.
Currently, all valid refund credit notes issued up to the 31 March 2021 will benefit from ATOL protection until 30 September 2021, at which point Government backing for their ATOL protection will cease.
Consumers should exchange their refund credit note for cash or use it to purchase an ATOL protected booking before this date.
Paul Smith, Consumer Director at the UK Civil Aviation Authority said: “We recognise that changes to government restrictions on travel have an unprecedented effect on ATOL holders and on consumers with ATOL protected bookings. In light of these circumstances, we have extended ATOL protection for refund credit notes.
“This will allow for travel companies to offer their customers refund credit notes in good faith and mean that consumers will not be at financial risk if they choose to accept a refund credit note rather than a cash refund.”