Credit shells from airlines may earn you interest

The first two nationwide lockdowns in the wake of the covid-19 pandemic resulted in the suspension of air travel from 25 March to 3 May. Passengers who booked tickets for travel during this period were left in a lurch with little clarity on cancellation and refunds. While some airlines initiated a refund within a few days, others are yet to take a call on the same.

“Some airlines such as IndiGo and AirAsia refunded the full amount to the travel agents’ wallet and it was left to the agents as to how they want to refund the money to their customers. However, in some cases airlines offered credit shells to passengers instead of a refund,” said Nishant Pitti, CEO and co-founder, EaseMyTrip, an online travel agent.

Credit shells are open tickets issued by an airline when it wants to hold the booking amount as credit.