Airlines face new threat as refund rules siphon cash

fotolia airplane
By Mike Turner
14 May 2020

Huge amounts of state aid for European airlines still might not be enough to stave off defaults and insolvencies after a European Commission guideline suggested the industry needs to stump up more than €9bn in short order to refund customers forced to miss flights.

The EC recommended on Wednesday that vouchers should be offered to passengers as an alternative to reimbursement, though stopped short of recommending the lifting of regulations that mean airlines have to reimburse the full cost of tickets in cash.

Airline bonds have been hammered during the cronavirus crisis, with ...

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