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The European Commission has published today the ‘Guidance clarifying certain EU rules applicable to passengers and tourism as well as transport operators, including in light of the current reduced supply of jet fuel from the Middle East’.

The guidance clarifies existing EU rules on fuel uplift obligations, fuel surcharges, airport slots, public service obligations, and air passenger rights.

 

Main points of the Commission Guidance on the Middle East crisis

 

Applicable law

The Commission confirms that travellers continue to benefit from existing EU consumer protection legislation.

2(a) Air passenger rights

Under Regulation (EC) No 261/2004, passengers affected by flight cancellations remain entitled to:

• reimbursement;
• re-routing or return transport; and
• assistance at the airport.

Where a cancellation is notified less than 14 days before departure, compensation is generally payable unless:

• suitable re-routing was offered; or
• the air carrier can demonstrate the existence of extraordinary circumstances.

The Commission indicates that:

• actual local fuel shortages may, depending on the circumstances, qualify as extraordinary circumstances;
• high fuel prices alone do not qualify as extraordinary circumstances.

Air carriers remain free to set ticket prices before sale in light of market conditions, including fuel costs. However, fuel price volatility is considered part of the normal commercial risk of operating an airline.

Reimbursement may be made by voucher only if the passenger freely agrees.

Airlines and intermediaries are encouraged to:

• provide clear and timely information;
• facilitate communication with passengers; and
• ensure timely reimbursement.

2(b) Package travel

Package organisers must:

• remain contactable;
• assist travellers, including where relevant by providing information on consular assistance; and
• comply with their obligations under the Package Travel Directive.

Before the start of the package, both travellers and organisers may terminate the contract in the event of unavoidable and extraordinary circumstances, with the traveller being entitled to a full refund within 14 days.

Organisers may offer vouchers on a voluntary basis instead of a cash refund, but travellers cannot be required to accept them.

Refund claims resulting from terminated package travel contracts must remain covered by the applicable insolvency protection scheme.

2(c) Fuel surcharges and price increases

Under Regulation (EC) No 1008/2008:

• airlines must indicate the final ticket price transparently from the beginning of the booking process, including all unavoidable and foreseeable charges;
• airlines may not increase the ticket price after purchase solely because fuel prices have risen.

Optional price supplements are valid only if they are:

• clearly communicated;
• transparent; and
• accepted by the passenger on an opt-in basis.

For package travel, organisers may increase the price only where:

• the contract expressly allows such revision; and
• the increase directly results from permitted cost changes, including fuel or other energy costs.

A package price increase:

• of up to 8% does not give the traveller a right to terminate;
• of more than 8% allows the traveller to terminate without penalty.

Organisers must:

• notify the traveller at least 20 days before departure;
• explain the increase; and
• provide the calculation on a durable medium.

Travellers are also entitled to a corresponding price reduction where the relevant costs decrease.