Bamboo Airways Commits To Settling Refunds By June 2025, But Financial Instability Fuels Deepening Concerns

Written By: Mohamaya Singh

Mohamaya Singh

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May 29, 2025 2:15 PM

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Bamboo Airways is coming under growing anger as it fails to meet its refund obligations, with both customers and travel agents stuck in limbo for extended periods of time. Close to two years since the 2023 canceled flights, customers remain in limbo as the airline made a payment plan promised but is yet to honor its commitments. With financial turbulence worsening and growing fears over its ability to honor its deadline commitments, Bamboo Airways is in a tight spot with regards to settling the outcome and regaining the trust of its angry customers. As the June 2025 deadline approaches, there is growing skepticism over the airline’s survival and ability to weather its operational and financial crisis.

Bamboo Airways, which made its debut in the Australian market in early 2022, has since faced significant financial struggles, leading to its withdrawal from long-haul markets, including Australia and the UK, by October 2023. The airline’s departure from these international routes came after it reported a staggering \$700 million loss for the 2022 fiscal year. Currently, Bamboo Airways operates mainly within the Vietnamese domestic market, leaving many of its international customers, particularly those who booked flights in 2023, still awaiting refunds almost two years later.

Despite the company’s retreat from international markets, several travel agents and customers who had purchased tickets for services that were later canceled are still waiting for their refunds. The delay has sparked frustration, with many passengers and agents seeking answers as to when they will see their money returned. In March 2025, after a series of reports from Travel Weekly, some travel agents received official correspondence from Bamboo Airways, outlining a payment plan for refunds. This plan promised that refunds would be processed between April and June of this year.

According to the letter sent to the travel industry, Bamboo Airways expressed its “sincere apology” for the inconvenience caused by the suspension of its International Air Transport Association (IATA) account. The airline explained that it was continuing to work with IATA to schedule the refunds and that payments were expected to be completed by June 2025. The first round of payments was scheduled to be disbursed by April 2025. The letter, which was signed by Nguyen Thuong, the airline’s deputy general director, offered a glimmer of hope to agents and passengers alike, as it provided a clear timeline for the expected refunds.

However, the long-awaited payment plan has not been without complications. One of the key issues contributing to the delay in processing refunds is the suspension of Bamboo Airways’ Billing and Settlement Plan (BSP) account, which is a system that airlines use to process ticket refunds through travel agents. Without an active BSP account, Bamboo Airways has faced challenges in issuing the refunds that were owed to customers. This has created a frustrating Catch-22 situation for the airline: it needs its BSP account reinstated in order to process the refunds, but the suspension of the account has made it impossible to do so.

While the letter outlining the refund plan was initially met with optimism, that optimism is now giving way to concern as the June 2025 deadline approaches without any payments being made. Travel agents, who were hoping to receive their owed funds by the spring, are left in limbo, unsure whether the airline will meet its promise. It remains unclear whether IATA has received any payments or if Bamboo Airways will be able to resolve the situation before the stated deadline.

For some travel agents, the refunds owed are substantial. Helen Rolton, a travel agent, shared her frustration as she awaits a refund of up to \$15,000, which has not been processed as of the latest update. The significant amount involved in her case underscores the severity of the situation for travel professionals who are already facing financial strain due to the ongoing delays. It is unclear whether these agents will be compensated in full or if the airline will continue to postpone the refund process indefinitely.

The ongoing situation has left customers feeling abandoned, as many of them had made their bookings with Bamboo Airways in good faith, only to face cancellation notices and the inability to get their money back in a timely manner. The airline’s promises of a refund schedule have been met with skepticism as the June deadline approaches without the expected funds being released. The situation has caused growing anxiety for both travel agents and passengers, many of whom are questioning whether the airline will be able to fulfill its refund commitments at all.

In the wake of Bamboo Airways’ withdrawal from international markets, questions have been raised about the airline’s financial stability and its ability to recover from its current financial difficulties. The lack of a clear and timely resolution to the refund issue has cast doubt on whether the airline will be able to regain the trust of its customers and partners in the future. Many are now wondering whether Bamboo Airways will ever return to international markets or if it will remain a domestic-only carrier, continuing to operate primarily within Vietnam.

Bamboo Airways is in the midst of stern criticism as it still lags far behind in the processing of refunds for canceled flights, with disgruntled customers and travel agents stuck in limbo financially. As concerns over its capacity to honor guaranteed targets grow, the airline continues to face uncertainty over its future.

As the June 2025 deadline approaches, the airline faces increasing pressure to resolve the refund issue and restore confidence among its customers and partners. The future of Bamboo Airways is uncertain, and while the airline has made efforts to address the situation, it remains to be seen whether these efforts will be sufficient to satisfy the numerous customers and travel agents who are still waiting for their refunds. Until then, travelers and agents alike are left to hope that Bamboo Airways will fulfill its promises and resolve this long-standing issue in the near future.