Transport secretary, Grant Shapps, revealed at the virtual ABTA travel association conference that flights between the UK and the European Union (EU) could be grounded from January 1, 2021, if the UK leaves the EU with a no-deal Brexit.

Currently, UK and EU airlines can fly freely between countries in the Schengen area under the open-skies agreement. However, this deal will expire on December 31 as the Brexit transition period ends, if a resolution is not reached.

The transport secretary insisted that the government is exploring all options and hopes to come to an agreement that benefits both the UK and the EU.

There are concerns within the travel industry that traveller confidence is already at an all-time low as a result of the Covid-19 pandemic, and with only a couple of months to go before the UK officially leaves the EU, confidence could erode even further if a deal is not made before the end of the year.

Here at Travel Insurance Explained, we remain optimistic that plans will be in place when it comes to air travel should there be a no-deal. However, we would strongly advise anyone looking to book a holiday for next year to look for a policy that includes ‘Brexit’ cover.

There are a few travel insurance providers offering Brexit cover in the market currently, and we predict that there will be more of these types of policies available as we approach the run-up to Brexit.

For more information on how travel could change after Brexit, click here.