Koala & Volotea launch travel insurance partnership

Koala has signed a partnership with Volotea to offer travel insurance and passenger protection products to the airline's customers, extending its reach into one of Europe's larger regional airline networks.

Volotea's more than 11 million annual passengers can buy travel insurance, baggage cover for delayed and lost luggage, and flight disruption insurance. The products are available during and after booking across the airline's network.

The agreement is among the first examples of an airline adopting Koala's insurance products since CarTrawler acquired the company in 2025. CarTrawler has worked with Volotea on car rental services since 2023, and the latest deal adds insurance to that broader commercial relationship.

Airlines are under growing pressure to manage disruption more effectively as delays and cancellations remain widespread. Figures cited by the companies show that about 248 million passengers, or roughly a quarter of the 1 billion passengers departing from US airports in 2025, experienced a delay or cancellation. Travellers collectively lost 1.5 million hours to delays.

Across Europe, disruption rates have also risen, with delays up more than 50% year on year, according to those figures. Against that backdrop, airlines are turning to products that cover missed flights, baggage problems and other disruption without relying on standard claims processes that can take time to complete.

Broader push

For CarTrawler, the partnership reflects a broader push beyond car rental into other airline add-on products. The addition of Koala supports a model in which airline clients can sell multiple ancillary products through a single platform.

That matters because airlines are increasingly seeking new sources of non-ticket revenue as margins remain under pressure. Insurance and disruption cover have become part of that effort, alongside more established extras such as seat selection, baggage and car hire.

Koala says its products automate parts of the process for passengers affected by delays or cancellations. For eligible flight disruption, delays and cancellations are monitored in real time and compensation can be provided proactively. Baggage issues and early trip interruptions are handled through a simplified process.

Koala operates as a business-to-business-to-consumer travel insurance provider and says it works with more than 70 travel brands in 17 countries. Volotea gives it access to a carrier with a broad footprint across smaller and medium-sized European cities, where the airline has built much of its network.

Executive views

Léo Tordjman outlined Koala's position on the partnership.

"We're excited to partner with Volotea to close the gap between travel insurance expectations and reality. By building fully automated products from scratch, we remove the traditional friction of insurance while creating new revenue opportunities for our partners and seamless protection for customers at every stage of their journey," said Léo Tordjman, Chief Executive Officer of Koala.

Volotea presented the deal as part of its effort to expand its ancillary offering.

"We're delighted to partner with Koala to offer our passengers a new generation of protection solutions that are simple, flexible and fully integrated into the booking journey. At Volotea, we're committed to enhancing the customer experience at every stage of travel, and this partnership allows us to provide greater peace of mind while continuing to expand our ancillary offering in a seamless and customer-centric way," said Álex Baró, Deputy Chief Commercial Officer of Volotea.

Volotea was founded in 2011 and says it reached 80 million passengers in 2025. The airline serves 110 airports and operates bases in 21 small and medium-sized European cities.

Its route map and focus on regional connectivity make disruption management particularly relevant, as point-to-point travellers often have fewer alternatives when flights are delayed or cancelled. According to the companies, the new arrangement adds insurance options across that network in multiple languages.

CarTrawler's acquisition of Koala marked a strategic shift for a business long associated with car rental and mobility services for travel groups. The Volotea agreement shows how that strategy is being put into practice through existing airline relationships.

The insurance products are now available across Volotea's network and can be added at multiple stages of the journey.