XL Leisure Group In Administration

The XL Leisure Group, Britain’s third biggest package tour operator sunk into administration this morning after a long period of financial uncertainty. XL, who failed in recent weeks to secure further funding, has blamed rising fuel prices and the economic downturn for their demise.

The Xl Leisure Group consists of XL Airways, Aspire Holidays, Freedom Flights, The Really Great Holiday Company (including XL Holidays), Medlife Hotels, Travel City Flights, and Kosmar Villa Holidays – all of which are affected.

The Administrators cannot continue trading the business and therefore all flights operated by the XL Leisure Group have been immediately cancelled and will not be rescheduled. XL’s fleet of 21 aircraft were also grounded in the early hours of this morning, meaning that holidaymakers in over 50 destinations around the world were unable to return home or depart from the UK.

Many customers affected will have booked their holiday as a package, and so will be protected by ATOL. This should cover the cost of their flights back to Britain and hotels. However, many will be stranded in airports as they await seats on other airlines.

The XL Group failed to reach a refinancing deal with creditors and last month cancelled its entire winter Caribbean programme as well as cutting its daily service between Gatwick and Knock.