Mango Airlines to begin refunding passengers with unused tickets

Update: 10 December, 10am

Mango Airlines, the low-cost carrier once celebrated for its affordable flights across South Africa, faces a complicated financial landscape after its protracted struggle with bankruptcy.

In a recent announcement, the airline confirmed it will start reimbursing passengers holding unused tickets and covid-19 vouchers, but the news comes with grim implications: customers will only receive a mere 12.66% of their claims.

This decision comes as Mango Airlines officially shifts its operations into a structured wind-down plan, approved by creditors and Business Rescue Practitioner (BRP) Sipho Sono, as per report by Travel News.

This approach is a move away from full liquidation and aims to recover as much value as possible from the beleaguered airline’s assets, though it does little to alleviate the financial pain for those who had hoped for a full refund.

The liability for unflown tickets initially stood at R169 million, but by the verification deadline of 1 September, only R29.5 million in claims had been verified. Sono attributed the substantial gap in anticipated refunds to the fact that around R100 million worth of covid-19 vouchers were never submitted for verification.

This failure to act on valid vouchers left many passengers feeling abandoned by the airline they once trusted for their travel needs.

Under the newly adopted plan, refund distribution will unfold in a staggered manner. Passengers will receive 40% of the meagre payout amounting to just 5.064 cents per rand of their claim value within 30 days of the plan’s ratification on 24 November 2025.

The remaining 60% will be disbursed only after the completion of tax assessments by the South African Revenue Service (SARS) and the Auditor-General, covering the period from 2023 to 2025, as per Travel News.

Moreover, in a glimmer of hope for distressed customers, Mango Airlines is exploring additional funding avenues through its Passenger Protection Plan guarantee.

This fund is held by Standard Bank and remains under the oversight of both the Air Services Licensing Council (ASLC) and the International Air Services Council (IASC).

If the councils choose to release these funds, Sono has indicated that they will be specifically earmarked for customer refunds. However, the exact size of this guarantee remains undisclosed, leaving many passengers uncertain about the potential recovery of their losses.

South Africa’s low-cost carrier Mango Airlines is set for a structured wind-down after its would-be investor, Ubuntu Air, abandoned the rescue deal, marking a likely end to the airline’s four-year struggle for survival.

BusinessTech and DailyInvestor report that prolonged delays, legal battles, and funding issues have derailed the airline’s revival, leaving creditors with a choice between a managed closure or a far worse liquidation scenario.

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According to BusinessTech’s coverage, Ubuntu Air, the investor group behind AfricaStay, formally withdrew on 31 July, citing unworkable delays in regulatory approvals, uncertainty around relaunch timelines and a failed funding partnership.

DailyInvestor adds that legal hurdles played a major role. A June 2025 High Court ruling invalidated key parts of the rescue plan, forcing a revised model that ultimately couldn’t secure backing.

The airline’s Business Rescue Practitioners (BRPs) argue that a structured wind-down, still part of business rescue, offers creditors 12.18 cents per rand owed, versus just 2.68 cents in liquidation.

SARS prioritization in liquidation would leave little for other creditors. A R383 million cash balance (as per BusinessTech) could fund partial payouts within months

With licenses already lapsed and no viable suitors left, the wind-down appears inevitable, but creditors may still salvage more than a fire sale would offer.

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