Research obtained by The Sun on Sunday has found the carrier settled just 29 per cent of claims without the need for a court case.
Passengers delayed by over three hours or who have their flight cancelled can claim compensation of £110 to £530 under EU laws.
Other companies included in the list of offenders included a number of the UK’s biggest airlines.
Figures showed budget carrier easyJet settled claims with passengers without the need for court proceedings on just 55% of occasions – while Virgin Atlantic paid out when first contacted in just 56% of cases.
Compensation law firm Bott and Co said Tui was notorious for denying or ignoring pre-litigation claims. Passengers were forced to have to go to court 70% of the time in order to get the compensation they were entitled to.
Jet2, Thomas Cook and British Airways won plaudits for paying claims without court proceedings needing to be issued.
Only one in ten cases had to go to court to get compensation from these three airlines.
Tui said it continually reviews how it handles flight delay claims.
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