The Civil Aviation Authority says it has settled 99% of the claims received from customers affected by the Thomas Cook collapse.
The CAA received around 340,000 claims and made nearly £350 million in payments under the ATOL scheme.
The figure is the largest amount paid out since the scheme was introduced in the 1970s.
CAA chief executive Richard Moriarty said: "This was a major operation that had to contend with huge complexity, incomplete data and fraudulent claims, and we acknowledge that some cases took longer to process than we would have liked.
"Nearly all claims have now been paid and we appreciate the patience of former Thomas Cook customers as we tackled this immense task – the biggest ever managed by the Atol scheme.
"I would also like to sincerely thank the dedicated teams we set up at the CAA to assist consumers with this claims process.
"Their work to get the right money back to the right people during the UK’s largest ever travel claims operation has been remarkable and hugely appreciated."
The CAA said claims continue to come in ‘on a daily basis’ and the system will remain open until September. Anyone still planning on lodging a claim should do so as soon as possible, the CAA added.
