Passengers stranded in refund row

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Some were forced to pay thousands of pounds for new flights.

As airlines such as British Airways and Virgin offered special deals to try to accommodate Zoom travellers, it emerged that some passengers would not get any money back.

Travel organisation Abta called on the Government to require all airlines to provide compensation for all passengers.

As passengers spoke of just how much they would have to fork out to salvage their holidays, Zoom revealed that about 80% of its passengers with outstanding bookings were likely to be able to get refunds.

It said that around 4,500 UK-based customers had made reservations for travel within the next week with Zoom - a UK-Canadian operation which flew from five UK airports and which has ceased all operations after running into financial difficulties.

Of these 4,500 about 650 had been due to travel from a variety of North American and Canadian destinations within the next 24-30 hours. Those who had paid for air tickets with a credit card or have travelled - or would have travelled - as part of a package holiday are eligible for refunds.

But there is no protection for people who have paid in any other way for a flight-only ticket.

Abta has called on the Government to require all airlines to provide financial protection for their customers "as the failure of Zoom has meant that many hundreds of customers are finding that they could be out of pocket or stranded".

Meanwhile, UK carrier XL Airways has cancelled all flights to the Caribbean this winter due to the economic downturn and rising fuel surcharges, which have added about £100 to return-ticket prices.