XL Leisure Group collapse threatens travel misery for thousands

With XL Leisure Group, the third-largest travel company in UK, on the verge of collapse, tens of thousand of British holidaymakers could find themselves. It was reported that the company was filing for administration.

XL’s imminent demise is threatening to cause customers distress and inconvenience, as those who booked flights through XL Airways, could possible lose their money.

This is the latest in a series of major problems for UK holidaymakers, most recent affected by the collapse of the tour operator Seguro on Wednesday, leaving 2,500 travellers stranded abroad on package holidays.

Both companies failed due to the decrease in consumer spending on holidays, lowering their sales volumes, and the high cost of fuel, which increased their operating expenses.

Industry experts have said that customers who booked holidays through travel agents should be eligible for refunds, but those booking flights directly through XL Airways may well lose out. They also indicated that those who purchased their flights with credit cards will likely be provided a measure of protection, but those using debit cards could be out-of-pocket.

In August, XL Airways announced that it would be cancelling all flights to the Caribbean from the first of November, blaming high fuel costs and lack of demand for seats on the routes for the decision.

www.xl.com