Airlines Required to Refund Booking Fees for Canceled Flights

Airlines must reimburse passengers for booking fees when flights are canceled, particularly for tickets purchased through online booking platforms. This ruling comes from a recent opinion issued by European Court of Justice Advocate General Rimvydas Norkus, stemming from a legal dispute involving the Austrian Consumer Protection Association and KLM.

The case originated from a situation where passengers had booked round-trip flights from Vienna to Lima via Amsterdam with KLM through the travel site Opodo. After the flights were canceled, KLM refunded the ticket costs but subtracted the booking fee charged by Opodo, which was not explicitly stated in the initial ticket price. The affected passengers transferred their claims to the Austrian Consumer Protection Association, which pursued the recovery of the booking fee from KLM.

KLM contended that the specific amount of the fee was not known to them in advance. However, the Austrian Supreme Court (OGH) sought clarification from the European Court regarding the interpretation of passenger rights regulations. The Advocate General affirmed that airlines are obligated to refund the total price paid by passengers, including any booking fees.

According to the Advocate General, a long-standing relationship between the airline and the booking platform implies acceptance of any commission charged, regardless of whether the exact fee was known beforehand. The airline can only be exempted from this responsibility if the booking agent acts independently without the airline's consent or knowledge. In this case, the established contractual relationship between KLM and Opodo suggests otherwise.

This ruling is particularly significant as it underscores the consumer protections in place for air travelers within the European Union. It highlights the responsibility of airlines to ensure that passengers receive full reimbursement for canceled services, including any additional fees that may have been incurred during the booking process.

Fluggastrechte (passenger rights) were also a topic of discussion in the European Parliament recently. Lawmakers expressed concerns that the latest proposals from the Council regarding the long-awaited revision of passenger rights regulations could negatively impact consumers. Proposed changes include extending the minimum delay for compensation from three to four hours (or six for long-haul flights) and legitimizing baggage fees.

As the situation evolves, it remains crucial for consumers to stay informed about their rights, especially in light of ongoing discussions about air travel regulations within the European Union.