IATA Bond

IATA (International Air Transport Association) is an international trade body representing the airline industry. Travel agents can apply for IATA accreditation which authorises them to sell and issue international airline tickets.

For new applicants, an IATA bond will be required if a company or parent company’s accounts show that:

1. You have not made a profit before tax, or your current assets do not exceed current liabilities at the end of an accounting period.
2. Your company has traded for less than 3 years in the travel industry

For accredited IATA agents, an IATA bond will be required if a company or parent company’s accounts show that:

1. You have not made a profit before tax, or your current assets do not exceed current liabilities at the end of an accounting period.
2. You or your parent company undergo significant change of ownership

The level of IATA bond is based on an average of the projected annual turnover of airline seats less credit card sales, for the first two year’s trading.

The bonding levels are calculated to the nearest multiple of £5,000 and a subject to a minimum of £25,000.