Beware airlines’ cancellation refund ruses

The battle for refunds for cancelled holidays rumbles on.

All airlines must provide a refund within seven days of a trip being cancelled. While many airlines are doing their best to process a huge backlog, some are digging in their heels. Around 47,000 passengers are still waiting for refunds from British Airways, according to David Byers in The Sunday Times. Now BA has “begun offering passengers points on its Avios air miles scheme instead of cash refunds”.

There are two reasons you shouldn’t accept airmiles. First, if British Airways were to collapse before you used your miles you would lose them. Second, the airline can devalue its airmiles at any time, so you could end up with airmiles worth far less than the original price of your flight.

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Ruth Jackson-Kirby

Ruth Jackson-Kirby is a freelance personal finance journalist with 17 years’ experience, writing about everything from savings accounts and credit cards to pensions, property and pet insurance.

Ruth started her career at MoneyWeek after graduating with an MA from the University of St Andrews, and she continues to contribute regular articles to our personal finance section. After leaving MoneyWeek she went on to become deputy editor of Moneywise before becoming a freelance journalist.

Ruth writes regularly for national publications including The Sunday Times, The Times, The Mail on Sunday and Good Housekeeping, among many other titles both online and offline.