Steps you MUST take to avoid losing out

ONCE an airline has gone out of business, passengers are told to join the list of creditors for a refund — but it’s unlikely you’ll ever see a penny. Instead, take these steps to avoid being left holding the bill:

PAY BY CREDIT CARD

SO LONG as your fare is more than £100, you can claim the cost back from your credit card provider. If you used a debit card, you may be able to claim it back, although rules vary between banks.

UPGRADE YOUR INSURANCE

MOST travel insurance policies won’t help if your airline goes under. Instead, take out a policy with ‘supplier failure insurance’, which pays out for cancelled flights, but also replacement flights and unused accommodation, car hire or excursion costs.

BOOK A PACKAGE DEAL

YOU’LL get a full refund on the total cost of the holiday, not only flights. For those already abroad, you’ll be able to complete your holiday, before being booked on an alternate flight home.

THE POWER OF ATOL

ATOL protection covers customers in the event of the financial failure of airlines, travel agents or other holiday suppliers — but not all travel agents are covered.

In 2018, the Civil Aviation Authority (CAA) reported that more than 107 were late in renewing their Atol licences, and 117 had not renewed at all. Check if a travel agent is enrolled on the CAA website.

Find out more about your rights if an airline goes bust at which. co.uk/consumer-rights