The International Air Transport Association has released CTM’s AU$65 million (£34 million) security guarantee and restored its previous billing cycles, marking what the TMC called a “milestone” in its financial recovery.
CTM entered into “a financial security arrangement” with IATA last December after disclosing accounting discrepancies and overcharging UK customers by up to £118 million. The agreement required CTM to provide the guarantee and move from weekly to daily remittances under IATA’s Billing and Settlement Plan (BSP).
In a statement on Tuesday (20 October), the TMC described the adjusted settlement cycles and security guarantee as “temporary arrangements” and that restoring the previous terms is expected to “improve CTM’s working capital by approximately AU$30 million”.
In August, CTM secured financing to refund overcharged UK clients after reporting its long-delayed FY25 results earlier that month. It also recently extended lucrative contracts with the UK government, one of the clients affected by the overcharging crisis, and has agreed to repay the UK Home Office approximately £48 million by September 2027.
CTM group CEO and managing director Ana Pedersen added: “IATA’s decision is an important milestone for CTM, following the successful completion of its latest financial assessment of the company… Importantly, throughout this period, we have continued to provide uninterrupted service to our clients, with no disruption to ticketing or travel arrangements.”