The UK Civil Aviation Authority has now settled over 99 per cent of all claims made by those who lost future holiday bookings when Thomas Cook ceased trading.
This equates to around 340,000 claims, at a value of almost £350 million in ATOL payments.
This is the largest amount ever paid out by the scheme since its creation in the 1970s.
Claims for cancelled holidays are continuing to arrive on a daily basis.
While the claims system is open for new claims until September this year, the CAA encouraged anyone who has not yet opened a claim to do so as soon as possible.
Commenting on the milestone, Richard Moriarty, chief executive of the UK Civil Aviation Authority, said: “We are pleased to have settled more than 99 per cent of all the claims for cancelled Thomas Cook holidays that we have received to date.
“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.”
He added: “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.”