Passenger rights

Refunds and re-boarding for cancelled flights

Additional compensation for cancellations less than 14 days after departure

by Francesca Colombo and Filippo Martini

Imagoeconomica

3' min read

Translated by AI
Versione italiana

3' min read

Translated by AI
Versione italiana

The closure of the Strait of Hormuz, a strategic point through which the world's largest oil tankers transit and used by the main oil & gas producers, has led to a considerable increase in the price of fuel. One of the hardest hit sectors is air transport: according to the Financial Times - which cites Cirium's analysis - airlines have reportedly cancelled around 12,000 flights in the past two weeks.

In addition to cancellation, another frequent possibility is to ask for an addition to the price paid for the flight (from 9 to 14 euros): a practice that has prompted Codacons to file a complaint with the Antitrust Authority to verify its legitimacy.

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On 8 May, the EU Commission published guidelines for the transport and tourism sector in the European Union. The document, while noting the repercussions of the conflict in the Middle East on the affordability of transport services, does not consider suggesting specific measures (as at the time of the Covid for instance), but rather constant monitoring of the situation. From this it follows that passengers who suffer a flight cancellation or are asked to pay a surcharge can count on the provisions of the regulations in force.

The skipped flight

In the event of cancellation of the flight, according to EC Regulation 261/2004, the passenger - who must be properly informed - has the right to obtain an alternative choice (Article 8):

-refund of the ticket price (or voucher only if expressly permitted) and, in the case of connections, a return flight to the departure airport as soon as possible;

- embarkation to the final destination, 'under comparable transport conditions', as soon as possible;

- boarding on a later date of his choice.

In any case, the passenger is entitled to assistance (Article 9): meals, drinks and hotel accommodation while waiting for the return flight or 're-routing'.

Finally, there is a fine compensation (Article 7), the amount of which varies according to the distance in kilometres of the routes (from 250 to 600 euros), if the cancellation takes place less than 14 days before departure. The European Commission has clarified that the increase in fuel costs does not constitute an exceptional circumstance that would render the right to such compensation void.

The increased price

Another issue concerns the practice of airlines to charge a surcharge. The EC Regulation 1008/2008, Article 23, requires that the cost of the airline ticket including taxes and surcharges be made clear before purchase in a clear and transparent manner and the acceptance of the cost surcharges be made through opt-in, i.e. with voluntary and explicit consent.

Therefore, this practice of requesting a price supplement (due to the excessive cost of fuel) would not comply with the 2008 regulation.

In this regard, it should be added that the European Commission's guidelines are acts of so-called soft law: they do not have binding force, but guide the addressees, the operators in the sector, in the adoption of practices/conduct that comply with the regulations in force. It is therefore desirable for airlines to comply with this guidance in order to avoid the risk of possible litigation with passengers.

Protections at a glance

Transparent costs 

Transparency on the ticket price at the time of purchase, with an indication of any additional costs. Prohibition for the airline to change retroactively the ticket price. (Article 23, Regulation EC 1008/2008).

Remedies to cancellations 

In the event of a cancelled flight:

- reimbursement of the price (with your express consent, also with vouchers) and return flight; or re-routing to the final destination as soon as possible or on a date of your choice;

- assistance (meals/accommodation);

- financial compensation: if the cancellation occurs (not due to exceptional circumstances) less than 14 days before departure. (Articles 5, 7, 8, 9, EC Regulation 261/2004).

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