EU rejects high fuel prices as justification for avoiding passenger compensation

International

The European Commission says rising jet fuel costs linked to the Middle East crisis do not qualify as an “extraordinary circumstance” under EU passenger rights rules

The European Commission has clarified that airlines operating in the European Union cannot use high fuel prices as grounds for avoiding compensation payments to passengers affected by flight cancellations.

In new guidance issued to the transport and tourism sectors, the Commission stated that travelers remain entitled to reimbursement, re-routing assistance, airport support and compensation for last-minute cancellations under existing EU air passenger rights legislation.

The clarification comes amid ongoing disruption to global energy markets caused by tensions in the Middle East, including restrictions affecting air and shipping routes.

Fuel prices alone do not qualify as extraordinary circumstances

According to the Commission, airlines may only refuse compensation if they can clearly demonstrate that cancellations were caused by genuine extraordinary circumstances, such as a local fuel shortage directly affecting operations.

However, the guidance stresses that rising jet fuel prices alone do not meet that threshold under EU rules.

The Commission’s statement is particularly significant as airlines across Europe face mounting operational pressure linked to higher fuel costs and supply chain disruptions.

EU introduces temporary flexibility measures

To help carriers manage possible jet fuel shortages, the Commission announced temporary flexibility under the ReFuelEU Aviation framework. Airlines may be exempted from the EU’s 90 percent fuel uplift requirement in cases where safety regulations make additional fuel loading necessary.

At the same time, the European Union Aviation Safety Agency (EASA) issued a Safety Information Bulletin concerning the safe use of Jet A aviation fuel across Europe.

The Commission also adopted a temporary state aid framework allowing EU member states to support transport sectors affected by rising diesel prices and crisis-related disruptions. The measures apply to road, rail, inland waterways and maritime transport operators.

Airlines face growing financial pressure

Jet fuel prices in Europe have risen sharply over the past year as instability in the Middle East and disruptions in the Strait of Hormuz pushed up oil and gas prices.

European refineries currently cover around 70 percent of the EU’s jet fuel demand, while much of the remaining supply is imported from Gulf countries and the Middle East.

Several airlines have already announced operational adjustments in response to the higher costs. KLM said it plans to cancel 160 intra-European flights this month, while Lufthansa recently announced plans to discontinue operations at its CityLine subsidiary and reduce short-haul capacity through October.

The Commission’s latest guidance is intended to ensure that existing passenger protection standards remain in force despite the current market disruptions.