The airline goes bankrupt: what happens to your ticket, your money and your compensation?
At a glance
EU Regulation 261/2004 contains no rules on an airline going bankrupt. What you can recover depends on how you paid, whether the trip was a package and whether that airline operated the flight. Claims against the bankruptcy estate are uncertain and often yield little.
Not covered
Regulation 261/2004 has no provision on an airline going bankrupt
Credit
a purchase on credit may give you a claim against the lender (Swedish Consumer Credit Act)
3 months
to apply to Kammarkollegiet if the organiser of a package trip went bankrupt (Sweden)
In this article
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Another flight problemWhat the Regulation says, and does not say
We have read the whole text of the Regulation and the Commission's 2024 interpretative guidelines (C/2024/5687). Neither deals with what happens when an air carrier becomes insolvent. The rights to compensation and care remain on paper, but the Regulation provides no special route for getting them paid by a bankrupt carrier. What EU law does regulate concerns package travel: organisers must provide security for refunds and repatriation (Article 17 of Directive 2015/2302).
The airline that operates the flight is responsible. The Regulation's obligations rest on the carrier that operates the flight (Articles 2(b) and 3(5)). If an earlier journey was operated by another airline that is still trading, a claim under the Regulation is directed at that airline, not at the one that sold the ticket. See also booking through a travel agent. The Swedish rules below are labelled as Swedish; the rules of the country where the airline or lender is based may differ.
| How you paid | What may apply |
|---|---|
| Credit card or invoice | Under Swedish law you may have a right to object against the lender, usually the bank. In a credit purchase you may raise the same objections against the lender as against the seller, and the lender is liable equally with the seller for a claim for repayment, but not for more than you received through the credit (section 29 of the Swedish Consumer Credit Act 2010:1846). From 20 November 2026 the corresponding rule is in chapter 4 section 20 of the Consumer Credit Act (2026:1011); the older Act continues to apply to credit agreements concluded before then. Whether the purchase counts as a credit purchase depends on how it was financed. The Swedish Consumer Agency says the chances of getting money back are better when you bought on credit. |
| Debit card or other payment card | The right to object in the Swedish Consumer Credit Act applies to credit purchases, not ordinary debit purchases. For other payment cards the card company may have its own rules, and what applies depends on its terms (Swedish Consumer Agency). It is then the bank's or card company's terms that decide, not a statutory right, and the outcome is uncertain. Ask the card issuer about a chargeback. |
| Package trip | Contact the organiser. In Sweden the organiser is responsible even for services performed by someone else (ch. 4 s. 1 of the Package Travel Act) and must arrange equivalent transport or, if that is impossible, refund you (Swedish Consumer Agency). The travel guarantee at Kammarkollegiet applies only if the organiser itself becomes insolvent. |
| Booked through a travel agent or booking site | What matters is what you bought. If the flight was part of a package, see the row above. A stand-alone flight ticket is not covered by the travel guarantee (Kammarkollegiet), which leaves the card routes and the bankruptcy estate. |
| Voucher or credit note from the airline | The Swedish Consumer Agency page does not address vouchers, and we have found no source saying how they are treated. A voucher is probably a claim on the same airline that went bankrupt, in which case it could only be asserted in the bankruptcy, with uncertain payment. See voucher or cash. |
If the airline goes bankrupt before your trip
Keep everything
The booking confirmation, receipt and a bank statement showing the payment, plus any messages from the airline. Kammarkollegiet, for example, does not accept a booking confirmation as proof of payment.
Establish what you bought
Was the flight part of a package, or a single ticket? The answer decides whether the organiser or only the airline is your counterparty.
Contact the organiser or the card issuer
Package trip: the organiser. Credit card or invoice: the bank, citing the right to object. Other card: ask about a chargeback. Do not wait: an application to the Swedish travel guarantee has a three-month limit from the organiser's bankruptcy.
Lodge the claim with the administrator
A claim against the airline is made in writing to the administrator (Swedish Consumer Agency). If a claims procedure is held, there is a fixed period for lodging claims, and you must state the amount and grounds and attach documents (ch. 9 ss. 4 and 6 of the Swedish Bankruptcy Act). If you are late, late lodging is possible against a fee (ch. 9 s. 20). These rules apply to a Swedish bankruptcy.
If you are at your destination
Keep receipts for a new journey home and for accommodation or transport while you wait. The costs can be claimed from the estate afterwards (Swedish Consumer Agency). If you cannot get home on your own, you can contact your country's embassy; the Swedish agency refers Swedish travellers to the Swedish embassy.
Payment from the bankruptcy estate is uncertain
A bankruptcy estate often has other debts that rank ahead of the debt to you as a consumer, which makes it hard to get money back (Swedish Consumer Agency). In a Swedish bankruptcy only a claim that arose before the bankruptcy decision can be asserted (ch. 5 s. 1 of the Bankruptcy Act), and a claims procedure is held only if the administrator decides so. If the bankruptcy is in another country, that country's insolvency rules may generally apply instead, and the conditions may be quite different. We have not reviewed any foreign rules.
Example: a ticket bought directly, paid by credit card
You bought a one-way ticket directly from the airline and paid by credit card. The airline goes bankrupt a week before departure and the flight never operates. You can contact the card issuer and invoke the right to object, and you can also lodge your claim with the administrator. The bank's decision depends on the conditions for a credit purchase, and payment from the estate is uncertain. So you cannot be sure of getting everything back, and the Swedish Consumer Agency says the chances are better when you bought on credit.
When Airlate can and cannot help
- Against an airline that still operates. If the claim concerns an earlier flight with an airline that is still flying, Airlate can assess the claim and, if the terms are met, handle it.
- Against an airline in bankruptcy. The claim goes to the administrator, like every other creditor's. Airlate cannot recover more from the estate than you could as a creditor, and payment is uncertain.
- Cards and package trips. The bank, the card issuer, the organiser and Kammarkollegiet decide those questions. Airlate cannot promise any outcome.
Want to know how it works?
We assess free of charge whether a flight may be covered. If you submit a claim and accept the terms, Airlate handles the claim manually.
Common questions
The Regulation contains no rule on bankruptcy. A claim that arose before the bankruptcy can as a rule only be asserted in the estate, where payment is uncertain. If another airline that is still trading operated the flight, the claim under the Regulation is directed at that airline (Article 2(b)).
In Sweden, the travel cover in home insurance normally does not apply, nor do other pure travel insurances. Some insurances do protect against airline bankruptcies, and then you contact the place where you bought it (Swedish Consumer Agency).
The Swedish travel guarantee applies when the organiser of a package trip goes bankrupt, and it gives no compensation if you only bought flight tickets (Kammarkollegiet). If only the airline fails, the organiser should instead arrange the trip or refund you.
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Another flight problemShow all 10 sources
Every factual statement in this article rests on one of the sources below: EU regulations, judgments of the EU Court of Justice and the authorities' own pages.
Sources
- Regulation (EC) No 261/2004 of the European Parliament and of the Council of 11 February 2004 (recital 7, Articles 2(b) and 3(5)) · EUR-Lex · Regulation · retrieved 2026-10-15
- Commission Notice: Interpretative guidelines on Regulation (EC) No 261/2004 (C/2024/5687, 25.9.2024) · EUR-Lex / European Commission · Authority · retrieved 2026-10-15
- Directive (EU) 2015/2302 on package travel and linked travel arrangements (recital 38 and Article 17) · EUR-Lex · Regulation · retrieved 2026-10-15
- Konsumentkreditlag (2010:1846) (Swedish Consumer Credit Act), s. 2 (credit purchase) and s. 29 · Sveriges riksdag · Regulation · retrieved 2026-10-15
- Konsumentkreditlag (2026:1011) (new Swedish Consumer Credit Act), ch. 1 and ch. 4 s. 20 · Sveriges riksdag · Regulation · retrieved 2026-10-15
- Konkurslag (1987:672) (Swedish Bankruptcy Act), ch. 5 s. 1 and ch. 9 ss. 1, 2, 4, 6 and 20 · Sveriges riksdag · Regulation · retrieved 2026-10-15
- Paketreselag (2018:1217) (Swedish Package Travel Act), ch. 4 ss. 1, 4 and 8 · Sveriges riksdag · Regulation · retrieved 2026-10-15
- Resegarantilag (2018:1218) (Swedish Travel Guarantee Act), ss. 1, 2, 6 and 10 · Sveriges riksdag · Regulation · retrieved 2026-10-15
- Flygbolag i konkurs (reviewed 25 May 2026) · Konsumentverket (Swedish Consumer Agency) · Authority · retrieved 2026-10-15
- Ansök om ersättning ur resegarantin (published 15 October 2026) · Kammarkollegiet · Authority · retrieved 2026-10-15
Related guides
- A voucher instead of money: do you have to accept it?
- The airline says ‘contact your travel agent’: what does it mean?
- Refund or compensation: two separate rights, not an either/or
- The airline is not responding: what silence means and what you can do
- How far back can you claim flight compensation?
- The airline says ‘you accepted a voucher’: what does it mean?
- EU261: the regulation explained
- How it works