Canceled flights and expensive fuel, the new EU Commission guidelines on ticket refunds

Canceled flights and expensive fuel, the new EU Commission guidelines on ticket refunds

There European Commission he published new guidelines for the transport sector, hit by the crisis in the Middle East: the closure of Strait of Hormuz in fact, it is also having direct repercussions on the airline sector and, as the summer season approaches, consumers’ concerns about possible cancellations of flights.

However, after some airlines asked their passengers to supplement the cost of the ticket after purchase, the Commission intervened to clarify the rules (already in force) on fuel surcharges and passenger rights. In particular, the EU reiterated that a retroactive increase in the cost of airfare is not permitted.

The novelty, therefore, simply concerns the issue of fuel surcharges (which are already foreseen by the Regulation EU 1008/2008): airlines they cannot request an integration to those who have already paid for the plane ticket: the “flexibility clauses” included in the general terms, therefore, must be eliminated.

At the moment anyway, according to the European Commission they are not here concrete evidence of jet fuel shortages (aerial fuel), but if the conflict were to continue, shortages could arise, with possible flight cancellations, delays and higher prices for passengers. Meanwhile, the war in the Middle East has entered a stalemate, with the Strait of Hormuz hindered by a double blockade: Iran has presented a counter-proposal for peace to the United States, which has rejected the Iranian requests, calling them “unacceptable”.

What the EU fuel surcharge guidelines say

One of the central points of the guidelines concerns the introduction, a posteriori, of a supplement fuel for plane tickets. The topic had already been discussed about a month ago, after the low-cost airline Volotea had asked some passengers, a few days before departure, an addition to the ticket already purchaseddue to the high cost of fuel due to the instability of energy markets.

The European Commission intervened directly on the issue, reiterating the content of the Regulation no. 1008/2008 on air services, which imposes on airlines Of show always the final ticket priceincluding all unavoidable and foreseeable cost elements at the time of publication or offer.

This means that any retroactive change in price is excluded: airlines they can’t apply fuel surcharges after purchasing the ticket, even if the cost of fuel has increased compared to forecasts. As a result, airlines they cannot include terms and conditions which would allow them to increase the price of the ticket after purchase.

The guidelines, in fact, they don’t introduce anything newbut they specify what was already foreseen by European regulations, the interpretation of which had however generated doubts. Companies can therefore increase future ticket pricesbut they cannot impose a burden on passengers retroactive increase of fuel on tickets already sold.

The Commission, among other things, is very clear on this point: even if the contractual conditions of a company included flexible clauses on supplements, these clauses should still be communicated clearly, transparently and unambiguously at the beginning of the booking process. The acceptance of these specific conditions by the customer must then take place on a voluntary basis through an “opt-in” procedure, for example by ticking a non-pre-selected box.

In short, for the companies it is not enough to insert in the section “terms and general conditions” a small clause relating to the possibility of an increase in the ticket due to high fuel prices: this is why the EU has imposed on all airlines which provide, in their contractual conditions, the possibility of applying fuel surcharges after the sale of the ticket, to modify these conditionsbecause they do not comply with the European Regulation.

The question, however, is different regarding the so-called “tourist packages“, i.e. those that are purchased in travel agencies: in this case, the EU directive 2015/2302 on “all-inclusive” travel allows organizers to increase the price of the package after the conclusion of the contract, but only if this possibility is expressly provided for in the contract and whether the increase is a direct consequence of changes in the cost of transport related to the price of fuel.

In cases like this, a increase of up to 8% of the package price does not require the consent of the traveller. However, if the increase exceeds 8%, the traveler can choose whether to accept it or withdraw from the contract, without paying penalties. In any case, the organizer must communicate the increase at least 20 days before departurewith justification and detailed calculation. The directive also provides for the opposite situation: if fuel prices were to fall, the traveler would be entitled to a corresponding reduction in the price.

In which cases is there a right to reimbursement according to Brussels

Having resolved the issue of the increase in tickets due to high fuel prices, another question still remains: if our flight was canceled due to lack of fuel, what refunds would we be entitled to?

The EU guidelines, in reality, confirm what has already been said in the past: Air passengers continue to benefit from protections provided for by EC Regulation n. 261/2004. In the event of cancellation of your flight, therefore, the passenger has the right to choose between full refund or an alternative flight.

If the cancellation is communicated less than 14 days before departurethe airline is also required to pay one economic compensation. The only exception concerns the so-called “extraordinary circumstances”: the company can be exempted from this additional compensation if it can demonstrate that the cancellation was caused by exceptional events, which were impossible to avoid even by taking all reasonable measures.

On this aspect, however, the EU Commission reiterates one fundamental distinction: one deficiency local of fuel – which therefore practically prevents the flight from being carried out – can be considered one extraordinary circumstanceand therefore can exempt a company from paying compensation.

THE high fuel pricesInstead, Not constitute a circumstance extraordinary. This is because fuel represents a significant portion of airline costs and is notoriously subject to strong price volatility. The Commission has in fact underlined how many companies protect themselves from these fluctuations by gradually incorporating any increases into future tariffs. Managing price volatility, therefore, is part of the normal business activity of an airline and cannot be considered an exceptional circumstance.

Also for tourist packages there are specific protections for refunds: if the trip has not yet started, both the organizer and the traveler can cancel the contract in the event of unavoidable and extraordinary circumstances, with the right to a refund within 14 days. The organizer can offer a voucher as an alternative, but only if the customer voluntarily accepts. If the package is already underway, the organizer must guarantee assistance and propose alternative solutions.

Protections for airlines in EU guidelines

It must be said, however, that the EU guidelines they protect partly also airlines: For avoid closure of certain brokenthe Commission has exempted temporarily the companies from the rule of 90% refueling (which requires airlines to source at least 90% of the fuel needed for flights within the EU).

At the same time, to avoid the loss of airport slots, the Commission exempted companies from normal obligations relating to landing and take-off slots, precisely due to fuel supply problems at airports. During this period, therefore, airlines will not be penalized for not using their allocated slots.