Airline Bankruptcies: How to Get Your Money Back

A traveler’s worst nightmare is arriving at the airport to find out their airline has ceased trading due to bankruptcy. This has happened frequently in recent years with European low-cost carriers.

Does EU 261 Regulation Work in Bankruptcies?

Unfortunately, EU 261 rarely helps immediately here because there is simply no money available to pay standard compensation. Your priority instead shifts to recovering the cost of your ticket.

Your 3 Best Options:

1. Credit Card Chargeback: This is by far your most powerful tool. If you paid with Mastercard, Visa, or Amex, you have the right to request a chargeback from your bank for "services not rendered".
2. Travel Insurance: Select premium trip insurance policies include "Scheduled Airline Failure Insurance" (SAFI). Call your provider to verify precise policy terms.
3. Travel Agent Guarantees (ATOL / Package Trips): If you bought a package holiday (flight + hotel), you are heavily protected by EU Package Travel regulations, and your agent must refund the flight and find alternatives for you entirely out of their pocket.

Don't waste time demanding travel vouchers from a non-existent corporate entity. Act swiftly with your payment provider.