Cancelled flights and refunds: the European Commission’s guidelines in times of soaring fuel prices

The European Commission has clarified that passengers are entitled to refunds for cancelled flights even in the face of high fuel prices. Airlines are also prohibited from adding retroactive charges to tickets already purchased.

With 13,000 flights already cancelled on routes considered less profitable for airlines, on May 8 the European Commission adopted guidelines for the European Union’s transport and tourism sectors to address the ongoing disruptions in fuel supply and the closure of certain air and maritime routes linked to the crisis in the Middle East. In particular, the guidelines focus on the aviation sector — fuel supply obligations, fuel surcharges, airport slots, public service obligations and air passenger rights — addressing the impact of a potential jet fuel shortage should the conflict continue.

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According to the European Commission, high fuel prices are not a valid reason to deny refunds for cancelled flights © Getty Images

Mandatory refunds for cancelled flights even with rising fuel prices

Passengers affected by flight cancellations continue to benefit from their rights. They are entitled to reimbursement, rerouting or return transport, airport assistance and compensation for last-minute cancellations. Airlines may be exempt from paying financial compensation only if they can prove that the cancellation was caused by extraordinary circumstances, such as a local fuel shortage. High fuel prices, however, according to the European Commission, must not be considered extraordinary circumstances.

No retroactive charges on airline tickets

To ensure transparency in air ticket pricing, the Air Services Regulation requires airlines to display final ticket prices upfront. The aim is to prevent passengers from facing unexpected additional costs. Therefore, airlines are not allowed to retroactively charge extra costs such as fuel surcharges. For package holidays, the Package Travel Directive may allow tour operators to increase prices retroactively, if this is provided for in the contract and only under specific circumstances.

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No retroactive costs may be added to already booked airline tickets © Getty Images

Fuel supply rules: what changes

To help avoid the closure of certain routes, airlines may be exempted from the 90 per cent fuel uplift rule, which requires EU and non-EU airlines to refuel at EU airports for at least 90 per cent of the annual fuel needed for flights departing from those airports. The exemption applies when safety regulations require airlines to carry additional fuel from the departure airport — something that could otherwise prevent the airline from operating the next flight if fuel availability at the destination airport within the EU is insufficient. As for airport slots, airlines may be exempted, without penalties, from the usual obligations regarding take-off and landing slots due to fuel supply problems at airports.

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