The collapse of travel company XL has "set shockwaves through the industry", the Telegraph reports.
XL was the UK's third largest operator and approximately 80,000 customers were on holiday with the company when it collapsed, with another 200,000 booked to jet off at a later date.
A spokesperson for the Civil Aviation Authority told the newspaper that it was the biggest failure since the collapse of firm ILG 20 years ago.
Those protected by the Air Travel Organiser's Licence will be able to get money refunded for their losses and are covered to get home should firms collapse and flights be cancelled but those who are not could have to face the cost of returning to Britain themselves.
Customers who booked through credit cards may be able to claim money back under the terms of the Credit Card Act, according to the publication.
The BBC reports that share prices in other holiday firms TUI Travel and Thomas Cook were up by six and seven per cent respectively after the demise of their rival.
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