Didn’t board your flight? Airlines must refund taxes and fees
The Centre for European Consumer Protection (ZEV) is taking action against unlawful airline practices. The focus is on unauthorised processing fees charged when refunding taxes and fees for flights that were not taken.
We are reviewing airlines’ terms and conditions and issuing warnings where necessary. The first cases have already been successfully concluded.
Example: Proceedings against Aegean
ZEV received several complaints alleging that the airline Aegean had deducted a processing fee of 23 euros when refunding taxes and fees following a flight that had not been taken.
This was based on a clause in the Greek airline’s general terms and conditions.
In ZEV’s view, this clause placed consumers at an unreasonable disadvantage.
ZEV therefore issued a formal warning to Aegean. The airline subsequently reviewed its legal position, issued a cease-and-desist declaration subject to a penalty clause, and amended its General Terms and Conditions.
When are airlines required to refund taxes and charges?
Passengers are entitled to a refund of the taxes and charges included in the ticket price if they do not board their flight, even if the ticket is non-refundable. The reason for not boarding is irrelevant.
While the ticket price itself may be forfeited, this is not the case for taxes and fees. These are only payable if the passenger is carried. If the flight is not taken, the airline is not permitted to retain these amounts.
With low-cost flight tickets in particular, taxes and fees often make up a significant proportion of the total price.
Example from a case reported to the ZEV:
- Total ticket price: €615.18
- Airline ticket price: €139.00
- Taxes and fees (including fuel surcharge, air transport tax, security and airport charges): €476.18
In this case, the passenger would be refunded 476.18 euros.
Note that refunds are not always granted automatically. Consumers often must actively claim one.
Why we review airlines’ terms and conditions
We receive complaints about various airlines. We therefore review the terms and conditions of other airlines to identify similar clauses.
In our view, charging processing fees for refunding taxes and charges for flights that have not been taken is unlawful. German case law also supports this view. The Berlin Court of Appeal has already ruled that a similar clause used by an airline was unlawful.
Regardless of where the airline is based, German law generally applies if consumers book their flight from Germany or if they depart from or arrive at a German airport.
What we have achieved
We quickly reached a solution with Aegean Airlines (as described above). Should the airline breach the agreement again, it has undertaken to pay a contractual penalty. The ZEV will monitor compliance with the cease-and-desist declaration.
Additionally, ZEV has issued further formal warnings and is investigating other airlines that charge comparable processing fees for refunding taxes and charges, or that use similar clauses.
These include, for example, the airline Transavia, which also charged a €20 processing fee for the refund of certain taxes after passengers had cancelled their flights. Following a formal warning, Transavia issued a cease-and-desist declaration. The ZEV will also monitor compliance in this case.
Conclusion: Claiming refunds for unused flights
If you do not take a flight, you are generally entitled to a full refund of the taxes and charges included in the ticket price.
Processing fees or other deductions are not usually allowed.
If the airline does not issue a refund automatically, consumers should apply for one themselves. The template letter provided by the European Consumer Centre (ECC) Germany can help with this.
Taxes and charges not refunded? Report a breach!
Have you had problems getting a refund for taxes and charges on a flight that you didn’t take?
If so, please let us know via the enforcement contact form. We will review the information you provide and decide whether further collective enforcement action is required.
Funded by:
Was this article helpful for you?
