Tim Robinson, director at RSM UK, said the March renewal rate of 88% was an improvement on September’s 77%.

“This is encouraging news for the sector, as it suggests businesses are beginning to benefit from the improved levels of certainty they now have as a result of Covid restrictions being lifted in the UK,” he said.

“In addition, the removal of passenger locator forms ahead of the Atol renewal deadline will have given businesses a better ability to demonstrate the reliability of forecasting data to the CAA – as part of the renewal process.” 

However, he added the number of licences granted was down 16% compared with pre-pandemic levels but said this meant those still in business could capitalise on new opportunities.

“With the number of outright holders of licences decreasing, this presents an opportunity to those renewing now.”

He added the industry was “not completely out of the dark yet”. 

“Challenges for the travel industry continue, largely due to staffing constraints, coupled with inconsistent Covid requirements in some travel destinations overseas.”