Lastminute.com refunds customers £1m after facing court action

The refunds apply only to package travel holidays and not to flight or hotel only bookings

Only customers who booked package deals are included in the refunds (Ian Nicholson/PA)

Lastminute.com has paid out refunds to thousands of customers whose holidays were cancelled because of Covid-19 two weeks after it was threatened with court action by the competition watchdog.

The Competition and Markets Authority (CMA) said that the online travel agent had paid back a further £1 million to package holiday customers who were still waiting for refunds.