More airlines ‘will go bust in next six weeks’

Holidaymakers could face further misery as an industry insider has predicted that more airlines are at risk of bankruptcy due to the financial crisis.

Mike Ambrose, director general of the European Regions Airline Association, said he felt a “great deal of concern” about the market’s lack of growth in the third quarter of this year.

He predicted that more companies will go bust over the coming months, potentially leading to a similar situation to when XL went under.

Thousands of Brits were stranded abroad and those not protected under the Atol scheme may have faced higher debts as they could not recuperate costs.

“I know of three more carriers who I believe will be gone in the next six weeks. It is a serious situation,” Mr Ambrose stated.

He added the government is not helping the situation by piling additional costs onto airlines.

Figures from the International Air Transport Association show that growth slowed to 1.3 per cent in August, down from 1.9 per cent in July.

By Jamie Price