EasyJet has switched financial protection for its package holidays from the Travel Trust Association to an insurance-based scheme with International Passenger Protection.
IPP said easyJet was the first low-cost carrier to use its scheme to protect passengers in the event of its insolvency.
It said the insurance, which is provided automatically at no additional cost to passengers, will refund clients for the cost of packages bought online if the airline is unable to meet its financial obligations.
The insurance policy states that it will pay out in a number of circumstances, including if if an airline goes into liquidation, administration or is unable to meet its debts.
Passengers who buy only flights from easyJet are not covered by the insurance, but separate travel insurance is available for purchase on the airline’s website.
By Linsey McNeill
