The government-commissioned Airline Insolvency Review defined SAFI in March 2019 as insurance that protects the policyholder against losses arising from airline insolvencies. The CAA says some airlines and airline ticket agents offer a specific SAFI policy or include similar protection in a broader travel insurance product. Cover varies. Some policies pay only the cost of the original tickets or the unused part. Others pay the extra cost of new flights, such as tickets back to the UK.

Who buys it

• Travellers, on its own or within travel insurance. ABTA says a few travel insurance policies include SAFI but it is not generally included as standard.

• Travel businesses. The government’s guidance on the Package Travel Regulations notes that some organisers take out SAFI or supplier failure insurance to help cover refunds when a supplier fails. It adds that this does not change the organiser’s duty to protect travellers against its own insolvency.

How it differs from ATOL

ATOL is financial protection for package trips that include a flight and for some flight-only sales. It pays out when the ATOL holder fails. If the airline in an ATOL-protected package fails, the CAA says the travel firm must arrange alternative flights or give a full refund, and should bring customers home at the end of their trip if they are abroad. A flight bought with a valid e-ticket issued in exchange for payment is not covered by ATOL (see flight-only), and ABTA says flights booked direct with airlines are not protected by any scheme of financial protection. ABTA adds that an agent that supplied the ticket at booking need not find another flight or refund if the airline fails, though it may have airline failure insurance.

Is it still sold?

Yes. The CAA says some airlines and ticket agents offer it, and its advice on the 2025 Eastern Airways and Blue Islands failures refers passengers to SAFI.