Understanding scheduled airline failure and what it means for travellers

When planning a trip, the last thing anyone wants to think about is their airline going bust. But with the travel industry facing constant pressure, understanding what scheduled airline failure is and how it can affect your travel plans is more important than ever. This blog post will unpack the term "scheduled airline failure," explore its effects on travellers, and discuss how you can protect yourself. So, what is scheduled airline failure? 

Simply put, scheduled airline failure happens when an airline stops running business and scheduled flights due to financial difficulties or bankruptcy. This means if you’ve booked a flight with an airline that then goes bust, you could be left with a ticket you can't use. If you're already abroad, you'd have to find a different way to get home by booking new flights with a different airline or using a different form of transport (where possible). 

If an airline goes into scheduled failure, it's unlikely you'll get a refund directly from the airline. Once the airline stops running, it probably won't have the funds or staff to process refunds. This can leave travellers stranded without compensation, but that's where travel insurance comes into play. 

Scheduled airline failure insurance is there to protect you if the airline you’ve booked with goes bankrupt and cancels all flights. It can protect your money if you need to book other flights, or if you haven't had a refund from the airline.

Not all travel insurance policies cover scheduled airline failure. Some policies include it as standard, while others might offer it as an add-on. It’s crucial to check the details of your policy to see whether you’re covered for airline failure.

This type of insurance can also cover other related costs, such as accommodation or other types of transport you've booked for your trip.

If your flight is cancelled, it won't always be because of airline failure. If your airline is still running business as usual but has had to cancel your flight, you should receive a refund directly from them. If the cancellation causes you to lose money elsewhere - such as on your accommodation - you should be able to claim on your travel insurance.  Most policies offer cancellation cover as standard, but don't forget to read the small print before you buy. 

When planning a trip, there are a few steps you can take to protect yourself in case of scheduled airline failure:

Do some research on the airline you plan to book with. Check their financial stability and customer reviews before booking your flights

Scheduled airline failure insurance can give much needed protection in case of unexpected flight cancellations. Not every policy includes this type of cover, so make sure it's included before you buy

If possible, use a credit card to pay for your flights. In case of scheduled airline failure, you may be able to make a claim with your credit card company for a refund 

Keep an eye on the news and any updates about the airlines you have booked with. If there are signs of financial difficulties, it's better to be prepared and have a backup plan in place.