International Passenger Protection (IPP) has warned that a number of airlines could go out of business as a result of increasing fuel prices and the current global credit crunch. Nine airlines have already gone into liquidation this year, compared to 5 during the whole of 2007.

IPP director, Paul Mclean said, “There are many factors that can put pressure on an airlines finances and at the moment the current credit crunch and highest ever oil prices are simply reversing the hard efforts of many airlines who went back into profit after cost cutting exercises subsequent to September 11 th . Unfortunately we expect several other airlines to come into the same difficulties during this difficult period.”

Travel agency firms who are members of the Association of British Travel Agents (ABTA) have been able to offer their clients the ABTA Protection Plan. This provides cover for airlines going bankrupt and has helped to see an increasing number of travel insurance policies also covering for the collapse of an airline.