How safe are my flight credits?

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May 26, 2020
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I have nearly $2000 on account with Delta from trips I canceled in March and early April. While I intend to resume travelling as restrictions ease, I know that Delta and the entire airline industry is under tremendous financial pressure. If Delta declares bankruptcy, will I lose that money?
 

Barry Graham

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Jan 7, 2015
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I also have credits that I plan to use in the future. Since Delta canceled the flights (not me) I could probably get a refund but since I have 2 years to use them it suits me to keep them right now. This is just my opinion, I am not responsible for the fate of Delta!
 
May 30, 2019
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I also have substantial credits from trips I cancelled with Delta that I plan to use the future. Also, not worried.

If the airline declares bankruptcy, it is not likely that we will lose those credit. The airline will most likely honor those credits. Although they could be considered unsecured debts, there are several legal precedents around honoring customer credits in the retail and travel environment.

If the airline fails and liquidates, we lose the credits. We also lose one of the best US airlines in the business. I believe that is highly unlikely due to the financial strength of the airline; it's reputation; likelihood of government support; etc.

All MHO.
 

Barry Graham

Administrator
Staff Member
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Jan 7, 2015
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If the airline were to declare bankruptcy you might lose them. What's more likely to happen is that if they needed to they would file for bankruptcy protection (chapter 11) in which case the credits would probably be safe. I just wanted to clarify because they are not the same. I don't think either scenario will happen to Delta.
 
May 30, 2019
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If the airline were to declare bankruptcy you might lose them. What's more likely to happen is that if they needed to they would file for bankruptcy protection (chapter 11) in which case the credits would probably be safe. I just wanted to clarify because they are not the same. I don't think either scenario will happen to Delta.
Barry, I agree. We're probably using different jargon. In bankruptcy protection, AKA Chapter 11, the credits should be safe. In bankruptcy liquidation, AKA Chapter 7, the credits are not likely to be safe. And, yes, I don't think either is likely given DL's balance sheet & political connections.
 
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jsn55

Verified Member
Dec 26, 2014
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I don't happen to have any credits with Delta right now, but I agree with all my colleagues. If I did have credits, I'd not be worried.