Thomas Cook, easyJet and TUI have all recently announced losses, but how does this affects passengers who have flights and holidays booked with the travel firms? This is the latest travel advice. Shares in the high-street travel giant Thomas Cook plunged by almost 40 per cent two weeks ago and a £1.5 billion pre-tax half-year loss announced. Thomas Cook’s tour operations and airline are currently worth £738million. The firm blamed Brexit for a drop in profits. Budget airline easyJet also posted plunging profits – a loss before tax of £272million.
It said Brexit, increased fuel costs and the Gatwick drone incident which caused the carrier to lose millions between October and March are to blame.
However, easyJet’s CEO noted that “easyJet has the strongest balance sheet in aviation”.
Despite the news, easyJet has said it would go on to meet its profit expectations in 2019.
Tui also announced some losses in their half-year reports this month, but, as with easyJet, said these were in line with expectations.
Nevertheless, holidaymakers are worried about how these losses will affect them – with many contacting Thomas Cook on social media to ask what will happen.
According to MoneySuperMarket, the travel giant has reassured customers their trips are safe and that it’s taken steps to strengthen its financial position.
But for those who are worried, the consumer site has advised travellers on how best to protect themselves.
Package holiday with a flight
Package holidays with a flight included are ATOL-protected which means you’ll have protection should the company stop trading.
If you’ve yet to travel when this happens you’ll be given a full refund or a replacement holiday.
If you’re already away on holiday you’ll be able to complete your holiday and return home thanks to the scheme.
Double check you’ve received your ATOL certificate when you book and look out for the ATOL protection sticker when checking the details of your holiday.
DIY package holiday
If you bought the different elements of your DIY package holiday (e.g. flight, hotel, car hire) on the same website, shop or call centre in the same transaction, you’ll benefit from the same ATOL protection as above.
If you organised the different elements with the same website, shop or call centre but in separate transactions, you’ll still get a level of protection called ‘linked travel arrangement.’
According to MoneySuperMarket: “This only protects you if the company that sold you the holiday goes bust while it has your money, and not if the hotel, airline etc it’s dealing with goes bust.”
However, if you’ve booked all elements independently then you will not be covered.
Package holiday without a flight
For a booked package holiday that does not include a flight, you’ll benefit from ABTA protection.
This means you get a refund if you’re yet to travel or you’ll be able to return home (if the package included a return flight).
Flights
If you have just booked your flights through an airline it won’t be protected by ATOL.
This is why it’s best to buy flights on a credit card and get travel insurance to help you get some of your money back.
