Low-Cost Airlines Will Reimburse Stranded Passengers After All

Ryanair and BMI said they would reimburse passengers who held tickets on flights canceled due to the ash cloud.
Low-Cost Airlines Will Reimburse Stranded Passengers After All
4/22/2010
Updated:
4/22/2010
Ryanair and BMI reversed course Thursday and said they would reimburse passengers who held tickets on flights canceled due to the Icelandic volcano ash cloud.

The two airlines had previously said they would not follow EU Regluation 261, which require airlines to pay for passengers’ expenses for lodging and food whenever flights are canceled or severely delayed.

The two low-cost carriers came under fire for their announcements to not follow the regulation.

Ryanair said in a statement that they would work with the European Low Fares Airlines Association to change the regulations so that a limit is put on reimbursement claims; as written now, the requirement is for “reasonable expenses,” which could open the gates for large claims.

The International Air Transport Association (IATA) estimated that the Icelandic volcano cost airlines more than $1.7 billion in lost revenue through Tuesday.