CLEARWATER, Fla. – As the fallout from the massive electrical fire that shut down London’s Heathrow Airport continues to unfold, financial experts are warning that the logistical chaos could quickly spiral into a costly chargeback crisis for airlines and travel companies worldwide.
Monica Eaton, CEO of Clearwater-based Chargebacks911, told the Tampa Free Press the unprecedented disruption could cost the global travel industry tens of millions of dollars per day and urged affected businesses to prioritize customer refunds to mitigate additional financial damage.
“The stage is set for airlines to lose millions in reversed transactions, chargeback fees and penalties through disputes initiated by disgruntled travelers forced to find another way in or out of London,” said Eaton in a statement Friday.
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A fire at Heathrow’s main electrical substation knocked out power to Europe’s busiest airport, forcing it to close for at least 24 hours and stranding hundreds of thousands of travelers. According to Flightradar24, more than 1,300 flights have been canceled, affecting nearly a quarter of a million passengers.
While airports and airlines scramble to reroute passengers and restore operations, Eaton warned of a second crisis looming—a wave of chargebacks filed by travelers frustrated with refund delays or unclear airline policies.
“Some—whether through convenience or frustration—might opt to file a chargeback, believing it will be easier than trying to arrange for a refund,” Eaton explained. “Especially for airlines whose refund policy does not extend to circumstances such as these.”
A chargeback is a forced refund initiated by a credit or debit cardholder through their bank, usually in cases of fraud or when a service is not delivered as promised. But in large-scale travel disruptions, Eaton said chargebacks are increasingly used as a workaround for slow or inflexible refund processes.
Chargebacks911, headquartered in Clearwater with global offices in Essex, London and beyond, works with over 2.5 million merchants worldwide, including major travel brands like FlyDubai and Amadeus, to resolve transaction disputes and prevent financial losses from chargebacks.
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Eaton emphasized that proactive communication and timely refunds are essential tools for businesses navigating the crisis.
“Offering clear and timely refunds could save from the irreversible fines and penalties associated with the chargeback process, which could cost airlines nearly four times as much as the transaction itself,” she said.
Looking beyond the current situation, Eaton encouraged the entire travel industry to adopt chargeback prevention best practices, including stronger customer support systems and third-party solutions to manage disputes.
“Clear, effective, and responsive communication with customers goes a long way,” Eaton said. “For those customers who do opt to file a dispute, having the right systems in place can make all the difference.”
As Heathrow remains shut down and ripple effects are felt at airports globally, Eaton’s warning offers a crucial reminder: for airlines, this crisis is not only about grounded planes—it’s also about protecting revenue.
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