Thousands stranded as XL blames collapse on fuel costs and the economy

Last Modified: 12 Sep 2008
By: Channel 4 News

Tens of thousands of people's holidays are ruined after travel company XL collapses. Jane Dodge reports.

An estimated 85,000 people were left stranded, and another 200,000 who'd made advanced bookings with the firm are also affected.

The XL Leisure Group cancelled all of its flights and grounded its aircraft, blaming its problems on higher fuel costs and the economic downturn.

But that was little comfort for some passengers, who won't receive a full refund because of the way they booked and paid for their holidays.

Who is protected when airlines go bust?

With almost 300,000 holding XL tickets, who gets their money back?

If you booked your XL flights with a credit card, Visa debit card or as part of a package holiday, you should get your money back - but you won't get any help if you used another debit card or cash.

If you bought your holiday through an ATOL-affiliated travel agent, you will get a refund.

But if you booked flights directly with XL Airways or have an accommodation booking with XL Group's Medlife hotel agent - you will have to pay for new flights and you'll lose any deposit you paid.

And if you took out travel insurance you need to check your policy - most don't actually cover airline insolvency.