Airlines from across Europe reacted strongly on Wednesday night to a move in Brussels to force them to set up a compensation fund for passengers left stranded by failed carriers, which they say would be a costly response to an infinitesimally small problem.

European Union consumer commissioner, Meglena Kuneva, is expected to call for an extension of rules on insolvency protection to cover holidays and airline tickets people book for themselves on the internet.

Ms Kuneva would point out the thousands of holidaymakers stranded after failure of groups such as Bratislava-based SkyEurope and UK package operator XL.  She will also say that it is the right time to ask tough questions about extending basic insolvency protection to consumers across the board.

European parliament lawmakers have already passed a resolution asking the Commission to consider legislation to ensure that passengers were not let stranded, suggesting a reserve compensation fund.

Low-cost carrier EasyJet said that the number of passengers stranded was only a small percentage of the 600 million people who travel in Europe each year.

The carrier reported that it and other airlines already offered insurance to passengers and an industry-wide compensation fund would add more to the cost of an industry that cannot already afford it at the moment.

A total of 77 airlines have filed for bankruptcy in the European Union since 2000, with nearly 50 per cent in the last three years, according to figures.  The latest was SkyEurope this summer, which many of those booked not receiving compensation for the tickets purchased.