The Civil Aviation Authority has told travel companies they can continue issuing Refund Credit Notes (RCNs) for cancelled holidays until further notice.

Also, it said the Government and the Air Travel Trust (ATT) have agreed to provide ATOL protection to RCNs until 30 September 2022, a 12-month extension to the scheme.

In a statement, the CAA said: “The ATT will provide at least one month’s notice in advance of ending the scheme. These extensions mean that consumers whose package holiday bookings are cancelled will be able to safely accept a refund credit note where it is suitable for them.”

However, the CAA reminded travel businesses that consumers are entitled to a cash refund for a cancelled package holiday should they not wish to accept a Refund Credit Note.

The same conditions as previously advised to travel companies will apply to refund credit notes:

• They must be issued for a cancelled ATOL protected booking
• The booking must have been cancelled by the tour operator due to the coronavirus pandemic
• The refund credit note must be able to be exchanged for cash at a later date

Travel businesses are reminded that they must notify the ATT of any refund credit notes issued by completing the appropriate forms.

ABTA has already extended the deadline for issuing RCNs for non-flight packages until 31 May, but these must be used or cashed-in by 31 January next year.