The purpose of this research is to identify the impact of airline passengers’ perception of service recovery on their satisfaction and loyalty. A questionnaire was distributed to airline passengers who had a problem during their last airline flight. As we had several latent variables, we used partial least squares (PLS), a variance-based structural equation modeling method. As findings, we observed that in general, clients were not satisfied with the way that the service has been recovered. The most frequent reason for complaining was a problem due to flight delay, followed by a problem with the baggage, overbooking, and flight cancellation. Nevertheless, the findings reveal the positive impact of service recovery’s output/process qualities on customer satisfaction and customer loyalty. The output quality of the service recovery concerns the concrete resolution of the problem. The process quality of the service recovery concerns the overall procedure including the response speed, employees’ explanations, and empathy.