Airline Insolvency

Your airline collapsed and your flight was cancelled

When an airline enters administration, EC261 claims become very difficult — but you have three powerful alternative routes: chargeback on your card, ATOL protection (if part of a package), and filing with the insolvency administrators.

Check My Flight

Compensation

Full ticket refund via chargeback/ATOL

Regulation

Montreal Convention + Consumer Credit Act

Time Limit

120 days (chargeback) · ATOL (30 days) · Insolvency (varies)

What Counts

What is a Airline Insolvency?

Airline insolvency is treated differently from standard EC261 cases because the airline no longer exists as a functioning company. Different recovery mechanisms apply depending on how you paid and whether you were ATOL protected.

This qualifies if…

Airline entered administration or ceased trading
Flight was cancelled with no rebooking offered
You paid by credit card (Section 75 — strongest protection)
You paid by debit card (chargeback possible within Visa/Mastercard rules)
Flight was part of an ATOL-protected package
Booking made through an OTA that may have its own protection

Legal Basis

Section 75 Consumer Credit Act 1974 (UK): Credit card provider is jointly liable for purchases over £100. Visa/Mastercard chargeback rules: 120-day window from scheduled travel date.

How Much

How much are you owed?

Recovery depends on payment method and booking type. Act quickly — chargeback windows are strict.

Scenario / Distance	Example	Amount	Note
Credit card (UK) — Section 75	Flight over £100 on credit card	Full refund from card issuer	Most powerful — card provider jointly liable
Credit/debit card — Chargeback	Visa or Mastercard payment	Full refund if within 120 days	File immediately — window closes fast
ATOL protected package	Flight + hotel booked together	Full refund via ATOL scheme	CAA administers ATOL claims
Insolvency administrator claim	All other bookings	Partial — unsecured creditor	Lowest priority — may take 12+ months

Do I Qualify?

Eligibility checklist

Check these against your situation — the more you can tick, the stronger your claim.

You have a confirmed booking reference with the insolvent airline

Required

The flight was not operated due to insolvency

Required

You paid by credit card (strongest route) or debit card

Conditional

Your booking was ATOL-protected (check your booking confirmation)

Conditional

You are within the chargeback window (within 120 days of travel date)

Conditional

Not sure if you qualify? Submit your details via our free claim checker — we assess eligibility at no cost and no obligation.

Know Your Defences

Common excuses airlines use — and why they're wrong

"The airline is in administration — file with the administrator."

Filing with the administrator is the last resort. Pursue chargeback or ATOL first — these have higher recovery rates and faster timelines. Don't let banks or administrators talk you out of your primary routes.

"Your chargeback was declined — the airline provided the service."

If the flight was cancelled and not operated, the service was not provided. Challenge any chargeback decline. Provide your cancelled flight confirmation and evidence the airline ceased trading.

"You only have a claim for the ticket price, not compensation."

In insolvency, EC261 compensation claims are unsecured creditor claims. However, refund of the ticket price via chargeback or Section 75 is a separate and stronger right.

How It Works

How to claim — 3 steps

We handle everything from the first letter to final payment. You do nothing.

Identify your recovery route

Check how you paid (credit card = Section 75; debit/credit card = chargeback) and whether your booking was ATOL-protected. These are your fastest routes to a full refund.

File your chargeback or ATOL claim immediately

Chargeback windows are typically 120 days from the scheduled travel date. ATOL claims must be filed within 30 days of the airline ceasing operations. Don't delay.