On The Beach has voiced frustration with ongoing delays to the reform of customer protection rules under the Air Travel Organiser’s Licence (ATOL).
ATOL, which is provided by the Civil Aviation Authority, offers financial protection for trips when you are travelling abroad via air as part of a package holiday.
The CAA’s first round consultation paper, published in April 2021, outlined measures that could give additional protection to consumers through the restriction of the use of customer monies until the completion of a holiday.
On The Beach told investors on Tuesday it now understands a change in Government has led to an indefinite delay with ‘no definitive timetable in place’.
It added: ‘We will continue to take proactive steps to ensure we are able to compete fairly in the market whilst continuing to provide protection to our customers.’
Delays: On The Beach said it remained ‘frustrated’ by ongoing delays to the Air Travel Organiser’s Licence reforms
In its latest annual results, On The Beach said it enjoyed record-breaking customer volumes, with summer 2024 passenger numbers up 13 per cent compared to a year ago.
Winter 2024 bookings are also currently at record levels, climbing 25 per cent year-on-year, the group added.
The firm partially attributed the strong numbers to its partnership with Ryanair.
The company’s revenue rose by 14 per cent to £128million, while its adjusted pre-tax profit increased by a quarter to £31million. Total transaction value came in at £1.2billion, up 15 per cent year-on-year.
A 2.1p-per-share dividend was declared, having not declared one last year.
On The Beach also launched a share buyback programme through which the company will acquire £25million of shares, paid out of its £96million debt-free cash reserve.
The group said: ‘The Board is comfortable that the Company has sufficient distributable reserves to recommend the dividend and commence the share buyback programme.’
On The Beach shares jumped 13.05 per cent or 22.40p to 194.00p on Tuesday, having risen over 60 per cent in the last year.
Shaun Morton, chief executive of On The Beach, said: ‘This performance was driven by a combination of initiatives, including the successful integration with Ryanair, ongoing investment in our proprietary technology platform and further enhancements to our differentiated customer proposition.
‘The partnership has facilitated an improved customer journey for those booking Ryanair flights as part of an OTB package, whilst enabling increased operational efficiency and a greater focus on areas of strategic value.
‘What’s more, the agreement and significant upgrades to our technology have supported a doubling of our addressable market, following the addition of city breaks to our offering alongside planned investment in Ireland.’
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