Air Belgium Collapse Leaves $9M in Unpaid Passenger Refunds
The European Travel Agents’ and Tour Operators’ Association (ECTAA) has renewed calls for mandatory airline insolvency protection in Europe following the bankruptcy of Air Belgium, which left an estimated USD9 million (EUR8 million) in unpaid passenger refunds. Of that amount, more than USD5.6 million (EUR5 million) was for tickets sold through travel agents and tour operators.
Air Belgium ceased passenger operations in September 2023 to focus on cargo and aircraft leasing. After entering judicial reorganization, the airline was officially declared bankrupt on April 30, 2025. Its cargo division was sold to French shipping and logistics firm CMA CGM, which will continue using the Air Belgium brand.
In a statement, ECTAA criticized the lack of consumer and intermediary protection in the current European legal framework. The association highlighted that travel agents and tour operators, many of them small or medium-sized enterprises, are required by law to offer alternative travel arrangements to customers booking packages, even when they are unable to recover funds from insolvent airlines.
“With airline tickets usually paid months in advance, this creates a fundamental risk for intermediaries, customers, and taxpayers,” the ECTAA said.
The group urged European Union policymakers to address airline collapse protection in the ongoing revision of the EU Air Passenger Rights Regulation (Regulation 261/2004). It recommends a model similar to Denmark’s air ticket guarantee fund to safeguard passengers and agents against future airline failures, noting over 1,200 airline collapses in the past 25 years.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com