The European Commission on Friday clarified rules on air passenger rights given possible fuel shortages and travel disruption amid conflict in the Middle East.
In a guidance document to the EU transport and tourism sector, the Commission said that “the overall situation remains stable” and at the moment “there is no concrete evidence of fuel shortages”.
However, jet fuel supply disruptions could occur causing “delays, cancellations, longer travel times and higher prices” for travellers.
The guidance, which aims to ensure that the same rules apply across EU Member States, says that travellers affected by cancellations “continue to benefit from air passenger rights,” including reimbursement, re-routing or return, assistance at the airport and compensation for last-minute cancellations.
“Extraordinary circumstances”
Under EU rules, for cancellations less than 14 days before the planned departure date, airlines have to pay compensation, unless they can prove that these were caused by “extraordinary circumstances” which could not have been avoided.
The Commission said that a local fuel shortage preventing the operation of a flight may be considered an “extraordinary circumstance”. However, cancellations caused by high fuel prices cannot be considered so, because fuel prices are “entirely foreseeable”, and airlines are free to pass the cost through to the consumer setting higher prices.
“Managing price volatility is a normal part of an airline’s business,” the Commission argued.
“All the cancellations that have been announced for the time being are due to jet fuel prices, not due to shortages,” said Commission spokesperson Anna-Kaisa Itkonen.
Vouchers
EU rules state that airlines can provide reimbursement or compensation in money or in the form of a voucher, “if the passenger expressly agrees to it”.
In this regard, the Commission “strongly” encouraged airlines and travel operators to follow the recommendation issued in 2020, during the Covid-19 pandemic, on how to make vouchers “more attractive” to travellers, for example as regards validity, flexibility, transferability or reimbursability.
Transparent pricing
Air carriers also have to ensure “transparent pricing of air fares” and clearly show the final ticket prices before the purchase to avoid unexpected costs for consumers.
In this regard, the Commission said that charging additional fees retroactively, such as fuel surcharges, is not allowed.
Holiday packages
For holiday packages, EU legislation allows retroactive price increases if this is stated in the contract and if it is “a direct consequence of changes in the price of the carriage of passengers”.
In such cases, the price can increase up to 8 percent without requiring the traveller’s agreement. Beyond that threshold, the traveller may accept or terminate the contract without any fee.
Price increases can be proposed only if the organiser informs the traveller at the latest 20 days before departure, the Commission reminded.
