When an airline goes bankrupt - Here are all of your rights

Just like in any other industry, an airline can go bankrupt. This can have significant consequences for those affected. An airline bankruptcy can lead to various challenges for travellers, such as lost tickets and uncertainty about compensation. This blog delves into what happens to your rights and tickets when an airline declares insolvency, and how you can protect yourself.

Your rights in the event of an airline bankruptcy

When an airline declares bankruptcy, it typically ceases operations immediately. This often leaves passengers in a difficult situation, wondering, "What do I do now?" The first step in this process is to understand what bankruptcy means for your booked travels.

You have the option to direct your claim to the bankruptcy estate, whether it is for a refund or a voucher.

Important information about your payment method and airline bankruptcy

To navigate this uncertain situation, it is important to know the available options. Although direct coverage for flight tickets in the event of bankruptcy is not always guaranteed, there are steps you can take to minimise the risk of loss. One of the most effective methods is to pay for flight tickets with a credit card. Most credit card providers offer some kind of protection against bankruptcy, meaning you can get your money back through a chargeback procedure.

If you paid for your flight ticket with either Visa or Mastercard, you can check if it is possible to apply to your bank for a refund, citing the airline's bankruptcy.

It is also a good idea to check if your travel insurance includes coverage for bankruptcy, which can be a lifeline in these situations.

If an airline goes bankrupt and your case is with Refundmore

If you have previously opened a case against an airline that has gone bankrupt or is under financial administration or similar, there is a high risk that no compensation will be paid out.

If you already have an open case, Refundmore will inform you as soon as possible about the bankruptcy or financial administration and what it might mean for your case.