As fuel prices soar amid the Middle East crisis, Brussels warns airlines they cannot retroactively hike ticket prices — and says costly kerosene alone is no excuse for dodging passenger compensation.
Airlines cannot charge passengers additional fees for a flight bought in the EU, even if fuel prices surge sharply in the wake of the Middle East crisis, the European Commission said on Friday.
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A Commission guidance note for the EU transport sector ruled out any flight ticket price adjustments after the purchase - a practice that the Spanish low-cost company Volotea has been doing for weeks.
“Anyone selling air tickets must always display the final price the passenger will pay. This includes all unavoidable and foreseeable taxes, fees, and charges. Adding a fuel surcharge to a ticket after it has been bought cannot be justified,” a Commission spokesperson said.
Volotea slapped surcharges of up to €14 on tickets in recent weeks amid a surge in kerosene prices. The company calls its policy a “Fair Travel Promise", which is now part of its latest terms and conditions.
Volotea says it now reviews fuel market prices seven days before a flight departure, applying a surcharge if prices have risen, or refunding the difference if they have dropped. The fee is mandatory to confirm a passenger's seat on the flight.
The Spanish consumer protection organisation Facua called for an investigation, claiming the practise is unlawful and raising concerns that other airlines would follow Volotea’s example.
Volotea has been contacted for comments.
Refunding and rerouting
The Commission added that passengers affected by cancellations are still covered by EU air passenger rights. That means they are entitled to reimbursement, re-routing, or return, plus the assistance at the airport provided by the air company.
The recent fuel price rise prompted many European airlines, including Lufthansa, British Airways, and KLM, to cancel flights, saying they became either economically unfeasible or unprofitable.
But the Commission said airlines are only exempt from paying financial compensation if they can prove that the cancellation was caused by extraordinary circumstances, such as a local fuel shortage.
High fuel prices caused by the ongoing crisis in the Middle East, however, are not considered “extraordinary circumstances”.
“There is a difference between high jet fuel prices and a shortage of fuel...It is for the airlines to manage price volatility”, the Commission spokesperson said.
The Commission acknowledged that fuel prices account for much of air carriers’ costs, but said they are “entirely foreseeable at the moment.”
Since the Iran conflict began in February, the cost of jet fuel has more than doubled, mainly due to the closure of the Strait of Hormuz, which has cut off around a fifth of the world’s supply of oil.
For last-minute cancellations – less than 14 days before the scheduled departure – air carriers are in principle required to pay compensation, which could be either a total refund of the ticket’s price or a same amount voucher for future flights.