EU says high fuel prices do not justify increases in airfares

Brussels –Airlines should not raise airfares due to higher fuel costs, according to the European Commission’s guidelines on addressing the crisis caused by the war in Iran, particularly in the transport and tourism sectors. The point is that the measures in the document are not binding and therefore may have no effect.

The European Commission begins with the right of air passengers to a refund, which must always be guaranteed unless there are exceptional circumstances. In this regard, the European Commission clarifies that “cancellations caused by exceptionally
high fuel prices, as opposed to local fuel shortages, cannot be considered as constituting ‘extraordinary circumstances’.” It remains the case that if there is a fuel shortage, the flight may be cancelled and the right to a refund may be denied, but “the shortage must be proven,” Anna-Kaisa Itkonen, the European Commission spokesperson responsible for the dossier, stressed during the traditional briefing with the international press. She then clarifies: “At this moment, we see no tangible evidence of shortages.”

 https://www.eunews.it/en/2024/08/07/passenger-rights-app-eu-legislation/

As regards ticket prices, the legal interpretation of the rules issued by the European Commission states that airlines “may not include terms and conditions which would allow them to increase
the price of the ticket above what is advertised at the time of purchase simply because fuel was
more expensive than they had accounted for.” Consequently, airlines whose terms and conditions still allow for the application of fuel surcharges after the ticket has been sold “must modify those terms and conditions, as these are not
compliant with Regulation (EC) No 1008/2008 (the regulation on air services, ed).” 

“At the moment, the rise in fuel prices is clearly foreseeable,” Itkonen said, suggesting that carriers cannot take advantage of the situation. In any case, she makes it clear that the European Commission “considers that high fuel prices should not be considered as constituting an extraordinary circumstance.” Therefore, “increasing the cost of tickets that have already been purchased is not justifiable, and raises questions of fair competition” and the functioning of the single market and its rules. Consequently, it is not permitted to charge additional costs such as fuel surcharges retrospectively.

“The
final ticket price, including all unavoidable and foreseeable price elements, must be displayed at all
times when offering or publishing air fares to the general public,” the guidelines clarify. “As this obligation applies
explicitly to the final ticket price to be paid, any retroactive change of the price is excluded.” An exception is provided for in the case of package holidays: in this case, it is specified, “Any price increase can be proposed only if the organiser informs the traveller clearly and
comprehensibly of it at the latest 20 days before departure, with a justification for that increase
and a calculation on a durable medium.”