Passengers could soon be entitled to claim up over £1 million a year in compensation from airlines, according to industry experts.

EUclaim is set to open a new branch in the UK which will help travellers to reclaim money from cancelled flights.

According to the company, up to 1,000 Britons a day could be eligible for a claim which would amount to approximately £430 per person.

At present EUclaim has stated that companies are taking advantage of a loophole in in travel insurance regulations which put passengers off claiming for cancelled flights.

But according to EU laws, airlines do not have to provide compensation if flights are cancelled or passengers experience delays if the problems are identified as “extraordinary circumstances”.

However, EUclaim reports that airlines use the term to describe a host of technical difficulties which passengers tend not to challenge.

Hendrik Noorderhaven, chief executive of the company, said to Travel Bite: “It is no wonder that passengers don't bother to make a claim.

“It is virtually impossible for passengers to object to airline statements about technical circumstances.”  At the same time EUclaim allows travellers to enter their cancelled or delayed flight details into its website and then makes a claim on behalf of passengers.