Only 60% U.K. Travel Insurance Policies Cover Flight Disruptions Due To Strikes

Passengers in the arrivals hall of Terminal 5 at London Heathrow Airport in London, UK, on Monday, June 13, 2022.

(Bloomberg) -- Insurance may not save you from summer travel misery.

Four in 10 policies don't protect against strikes, the UK consumer watchdog Which? reported in its annual review. If your airline goes bankrupt, only half will refund your holiday costs.

The organization analyzed 199 policies offered by 71 providers and based their ratings on 61 different features per policy. While travel insurance can soften the financial blow from a cancelled trip, the findings suggest many travelers could still be left disappointed.

British Airways, whose workers based at Heathrow recently voted to strike in a dispute over pay, announced plans on Tuesday to slash even more flights from its summer schedule. The airline has now reduced its timetable by 11% through October as it looks to reduce last-minute cancellations over staffing shortages and long queues at airports.

“As the entire aviation industry continues to face into the most challenging period in its history, regrettably it has become necessary to make some further reductions,” a spokesman for the company said by email.BA isn't alone. After two years of virtually no travel, airports and airlines are struggling to keep up with demand, forcing them to cut capacity and cancel flights.

Before the 2022 travel resurgence, Covid-19 triggered a fundamental shift in how providers and consumers view travel insurance.Travel insurance was mostly sold to retirees traveling abroad before the pandemic. According to Squaremouth, which compares policies, younger people have since snapped up insurance to try and protect against delays, costs and other inconveniences caused from the virus, quarantines or emergency medical care.

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