Travel Tips and Ideas

4 Tips If Your Airline Goes Bankrupt

by Isabelle Raffin | Sep 23, 2022
airline bankruptcy

Before we travel, no matter the length or destination of our trip, we plan. In fact, we try to anticipate all the things that may happen or may go wrong, so that we are as prepared as possible. In a lot of cases making that extra copy of your itinerary or bringing your more comfortable hiking sneakers rather than the new ones works out in our favor. But some things are still beyond our control, like airlines going bankrupt, so air travelers need to be prepared for anything. We want to make sure, no matter where you plan to travel this year, your travel investments are protected.


Staying up to date with your airline

Try your best to be aware of airline changes in the news. Yes, this means even before you schedule your trip. The largest airline companies will probably have news coverage that you can’t escape, whether that be in the newspaper or through different media outlets. But smaller airlines probably won’t have as much coverage, so you should consider doing a little homework before you purchase a flight, as well as leading up to your departure.


Having a back-up plan

Consider this – you’ve already taken time off from work, the kids are excited to visit a new place, and the trip just can’t be rebooked for another time. Try to make sure you are prepared to come up with new travel arrangements. By staying up to date on your airline carrier as well as other airline carriers that will travel the same route, on the exact date and time, as your already booked trip, you’ll be ready to rebook if need be. Knowing what’s available may save you stress and time.


Don’t expect to be compensated

There may be times when companies will not reimburse you for the total cost of your flight if your airline does in fact file for bankruptcy. On top of that, airlines may not honor the ticket that you have purchased, making it much more difficult to reach your destination on time. * The amount of assistance you receive can depend on the company that you booked your travel plans with.


Consider purchasing travel protection that includes trip cancellation coverage for the bankruptcy or default of an airline

A travel protection plan, such as the Worldwide Trip Protector Protection Plan, may include trip cancellation coverage for the bankruptcy or default of an airline. With the Worldwide Trip Protector Plan, if the airline with which you booked to fly to your destination declares bankruptcy, you might be able to receive reimbursement for those prepaid costs. It is important to note, however, that this cessation of service needs to occur 14 days following your trip cancellation coverage’s effective date. Benefits will be paid due to bankruptcy or default only if no other alternate transportation is available. If alternate transportation is available, benefits will be limited to the change fee charged to allow you to transfer to another travel provider in order to get to your intended destination.

Always be prepared for the unexpected! Talk to your travel advisor today or visit







This blog links to websites for the following company, which is not affiliated with Travel Insured International or United States Fire Insurance Company: The Practical Nomad.

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