EU Confirms Airlines Must Compensate Passengers for Canceled Flights Amid Fuel Crisis
Airlines still have to pay compensation if flights cancelled due to fuel crisis, EU says
The Guardian
Image: The Guardian
The European Union has mandated that airlines must compensate passengers for flight cancellations due to fuel shortages, as jet fuel price increases do not qualify as extraordinary circumstances. This comes as airlines like Ryanair maintain operations while others, such as Lufthansa, have canceled flights amid rising fuel costs linked to geopolitical tensions.
- 01EU law requires airlines to compensate passengers for cancellations due to fuel shortages.
- 02Ryanair has hedged fuel costs, allowing it to avoid cancellations this summer.
- 03The fuel crisis is described as worse than the COVID-19 pandemic by AirAsia's CEO.
- 04The UK government has eased penalties for airlines canceling flights due to fuel shortages.
- 05AirAsia has secured a $19 billion deal for new aircraft amidst the crisis.
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The EU transport commissioner, Apostolos Tzitzikostas, stated that airlines must compensate passengers for flight cancellations caused by fuel shortages, as rising jet fuel prices do not constitute extraordinary circumstances. This ruling applies even post-Brexit in the UK, though the government has relaxed penalties for airlines in similar situations. Ryanair, Europe's largest airline, has hedged 80% of its fuel costs, allowing it to maintain its summer flight schedule, while other airlines like Germany's Lufthansa have canceled flights. The fuel crisis has been exacerbated by geopolitical tensions, particularly following the US and Israel's actions against Iran, which have significantly impacted oil exports from the Middle East. AirAsia's CEO, Tony Fernandes, noted that the current fuel crisis is more severe than the COVID-19 pandemic, with fuel prices tripling. Despite these challenges, AirAsia has announced a $19 billion deal to purchase 150 Airbus A220-300 jets, marking the largest aircraft order in Canadian history and promising job security for workers in Northern Ireland.
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Passengers may receive compensation for canceled flights, impacting their travel plans and finances. Airlines may need to adjust operations and pricing strategies in response to rising fuel costs.
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