Assuming you paid by credit card you'll be covered by the card company with no bother at all (one of the advantages of credit cards is that they have joint liability for any purchases*),
If you paid by debit card you're in a slightly worse position as you're much more reliant on the bank's internal policies.
Cash/cheque is worst position, as when a company goes into liquidation people who paid cash/cheque in advance are right at the back of the queue for any money to be returned, and don't have any of the protection credit cards give.
However you may I believe also be covered under ABTA or similar if the airline was a member of any of those schemes in the UK (which basically cover customers in case the company goes bust).