Malaysia Airlines offers full refunds on trips booked to the end of the year

Malaysia Airlines is offering full refunds to passengers with bookings up to the end of the year after losing its second aircraft in four months when MH17 was shot down.

Anticipating a flood of cancellations, the national carrier said even passengers with non-refundable tickets would get every cent back.

The tragedy in Ukraine, along with the still-unexplained disappearance of Flight MH370 in March, has cast a shadow over the airline's attempt to recover from years of financial losses.

"In light of the MH17 incident, Malaysia Airlines will be waiving any change fees for passengers who wish to make changes to their itinerary," the company said in a statement. "Passengers who wish to postpone or cancel their travel plans can obtain a refund, including for non refundable tickets."

Customers have until Thursday to decide whether to stick with the airline, cancel travel plans or switch to a different carrier. The offer includes tickets bought with frequent-flyer miles, as well as tickets that would not usually be refundable. Fees and charges for changes of bookings will also be waived.

A Flight Centre Hong Kong travel consultant said a number of clients had called to cancel bookings with Malaysia Airlines.