Usually yes, but often not from the airline itself. If you paid by credit card, your card issuer can reverse the charge for a flight you never got, which is typically the fastest and most reliable way to get your money back when an airline stops flying.
Here's the short version: you're generally owed a refund for a flight that never happens, but when an airline shuts down, actually getting the money depends a lot on how you paid. If you used a credit card, your card issuer is your best friend. It can reverse the charge for a service you never received, and that's usually faster and more reliable than waiting on a bankrupt airline.
There are really three ways to get your money back, and they do not all work equally well.
This is the big one. Under the U.S. Fair Credit Billing Act, you can dispute a charge for goods or services you paid for but never received. A flight canceled because the airline stopped flying fits that perfectly. Call your card issuer, tell them the airline ceased operations and you never got the service, and ask for a credit under the Fair Credit Billing Act.
U.S. Department of Transportation rules say you're entitled to a refund when a flight is canceled or significantly changed and you do not accept a rebooking or credit. The catch: an airline in bankruptcy may be temporarily blocked from paying refunds so it can conserve cash, and if it fully liquidates, you become one of many creditors waiting in line. That is exactly why the credit card route usually beats waiting on the airline.
Some travel insurance policies include "financial default" coverage, which can reimburse prepaid, nonrefundable costs if your airline goes out of business. It is not automatic, though. You usually have to buy the policy soon after your first trip payment, before the airline's troubles are public knowledge, and waiting periods often apply. If you already have a policy, check whether financial default is actually included.
Pay for flights with a credit card, every time. It is the single best protection you have if an airline folds, because a chargeback puts your bank on your side instead of leaving you chasing a company that is out of money. If you paid another way, file a refund claim with the airline right away and check whether travel insurance applies. Rules differ abroad, and places like the EU and UK have their own protections, but the credit card habit works no matter where you fly.
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