87,000 stuck as XL folds

Thousands of holidaymakers were left stranded today after the UK's third largest tour operator went bust.

XL Leisure Group announced it was grounding all flights early today after going into administration having failed to secure a rescue package.

Around 87,000 travellers are stranded abroad and around 200,000 face losing money for booked holidays.

The group said it had been hit by rising fuel costs and the credit crunch. It was currently £143million in debt.

Today the Civil Aviation Authority described it as the worst package holiday company failure for 20 years. Other travel companies launched a major operation to help holidaymakers stranded by the collapse.

Scores of disappointed XL customers queued today at Gatwick, at the firm's main airport. Many had no idea what had happened until they were told by airport officials.

XL Leisure Group stopped flying out of Birmingham Airport in May. But the airline still sub-charters from the airport and XL passengers were booked on two flights out of Birmingham today. Flight KM6508 to Skiathos, Greece, left as planned at 5.35am with 151 passengers but the airport could not confirm how many of those were XL passengers.

Another flight out of Birmingham could be affected this afternoon. KM6510 to Tenerife was due to leave at 4.30pm with 180 people on board.

Midcounties Co-op Travel, which has 25 branches across the West Midlands, said it had 400 customers in the region affected by the collapse, 25 of them currently in the Mediterranean. XL Leisure Group chief executive Phil Wyatt said today he was "devastated" at the company's collapse. He believed his firm should not have been forced to go into administration.

Mr Wyatt told a press conference it would be a "huge challenge" to bring home the 67,000 people currently overseas on holidays organised by XL. A further 20,000 are stuck abroad having booked with other companies which sub contracted the deals to XL.

Among those stranded today were Helen and Adam Scott-Reed, aged 41 and 51, who flew out to Kefalonia, Greece, on August 31.

The Wednesfield couple were due to fly home on Sunday but their flight to East Midlands Airport has now been cancelled.

Mrs Scott-Reed, an estate agent, said: "We turned on the news this morning and heard about it, it was quite a shock to say the least.

"Our travel agent has been really helpful though and is in talks with the Civil Aviation Authority about organising a flight back on Sunday. I'm supposed to be at work at 9am on Monday but who knows now."