The warning comes from Salisbury-based Antony Batty & Company Ltd, which says the ongoing conflict in Iran is causing “significant travel disruption” that could push already vulnerable businesses over the edge.
James Stares, director at Antony Batty & Company, said: “The conflict in Iran has caused significant travel disruption across the Middle East, with airspace closures, cancelled flights and major rerouting by airlines all placing tour operators under growing financial pressure.”
James Stares, director at Antony Batty & Company Ltd. (Image: Antony Batty & Company Ltd)
Under the Package Travel Regulations, operators must absorb the financial fallout from cancellations, repatriations and alternative arrangements – an obligation that Mr Stares warns creates “immediate and devastating cash flow pressure” for smaller operators.
A “steady stream” of Air Travel Organiser’s Licence (ATOL) holder insolvencies has already been recorded through 2025 and early 2026.
This includes well-known companies such as Balkan Holidays’ UK, Great Little Escapes, Jetline Travel and Source Travel Group.
Mr Stares described the current disruption as “unusual” because it affects key transit hubs such as Dubai, Doha and Abu Dhabi.
With holiday bookings already falling – a 5.7 per cent drop in April – he urged tour operators to seek help early.
He said: “We would urge tour operators facing rapid financial pressure to talk to an expert without delay.”
