UKAn airline went bankrupt before my flight. How do I get my money back?
If your airline went bankrupt before your flight, you may be able to claim a refund through ATOL protection (if booked with a UK travel company), your credit or debit card provider, or the airline’s insolvency administrator — but only if you booked directly with an ATOL-protected firm or paid by card.
What the Law Says
UK law provides several routes to recover money when an airline collapses — primarily through consumer credit protections and the ATOL scheme. The key statutes are the Consumer Credit Act 1974 (for Section 75 claims) and the Civil Aviation Authority’s statutory powers under the Air Travel Organisers’ Licensing (ATOL) scheme.
If you paid for your flight using a credit card and the total booking cost was over £100, Section 75 of the Consumer Credit Act 1974 makes your card provider jointly liable with the airline for breach of contract — meaning you can claim the full amount from your credit card company.
For debit card or credit card payments under £100, you may still request a 'chargeback' — a voluntary scheme run by card networks (Visa, Mastercard), not a legal right. You usually have up to 120 days from the date of the transaction or expected service date to raise it.
The ATOL scheme protects most package holidays and some flight-plus-accommodation bookings sold by UK-based travel companies. If your booking was ATOL-protected, you’re entitled to a full refund or repatriation — at no cost — even if the airline fails. ATOL protection is automatic when you book with a licensed UK travel business; look for the ATOL logo and certificate number (e.g., ATOL 2883).
Statutory TextWhere the debtor has entered into a relevant agreement with a creditor for the provision of goods or services, and the debtor has paid any part of the price by means of a credit agreement, the creditor shall be jointly and severally liable with the supplier for any loss suffered by the debtor as a result of any misrepresentation or breach of contract by the supplier.
— Consumer Credit Act 1974, s. 75(1) — Liability of creditor for breach of contract or misrepresentation
Statutory TextThe CAA may issue an ATOL to a person who satisfies the requirements… for the purpose of safeguarding consumers who purchase air travel services from that person.
— Civil Aviation Act 1982, s. 113A — Power to make provision for licensing of air travel organisers
What to Do
Check if your booking was ATOL-protected: look for your ATOL certificate (email or receipt) or search the CAA’s ATOL database at www.caa.co.uk/atol
If ATOL-protected: contact the CAA’s ATOL team immediately — do not contact the airline’s administrator first. You’ll need your certificate number and booking details.
If you paid by credit card for a booking over £100: contact your card issuer in writing to make a Section 75 claim — include proof of payment and evidence the service wasn’t provided.
If you paid by debit card or credit card under £100: request a chargeback within 120 days via your bank or card provider — provide confirmation of booking and airline collapse notice.
If not ATOL-protected and no card claim possible: register as a creditor with the airline’s insolvency practitioner — but expect little or no recovery, as passengers are unsecured creditors.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.