Passenger rights and ReFuelEU Aviation: new EC guidelines on compensation for cancelled flights during a fuel crisis
The European Commission has published guidelines under the AccelerateEU plan. This document is of key importance for air carriers operating in Europe, as it clarifies, among other things, the rules on liability towards passengers in the event of a drastic increase in fuel prices and the risk of fuel unavailability.
Regulation 261/2004: an increase in fuel prices does not exclude airline liability
The guidelines make the position clear: record-high aviation fuel prices resulting from the geopolitical situation in the Middle East do NOT constitute “extraordinary circumstances” within the meaning of Article 5(3) of Regulation 261/2004.
The European Commission recalls that fluctuations in the prices of energy commodities are part of the constant and foreseeable business risk inherent in conducting aviation operations.
If an airline decides to cancel a flight for commercial reasons, passengers are fully entitled to reimbursement, rerouting and financial compensation ranging from EUR 250 to EUR 600, depending on the length of the route.
However, the Commission introduces a precise distinction between a price crisis and a crisis involving the physical availability of fuel:
| Cause of the flight disruption | Is the airline required to pay compensation? |
| Drastic increase in kerosene prices (Jet A / SAF) | YES – the airline bears full financial liability. |
| Lack of route profitability caused by fuel costs | YES – a commercial decision does not release the airline from the obligation to pay compensation. |
| Physical, documented lack of fuel at the airport | NO – a large-scale failure of the refuelling system or a sudden disruption of fuel supplies to the airport due to external causes may be considered an extraordinary circumstance. |
| Closure of airspace / flight ban | NO – administrative and governmental decisions exclude airline liability. |
High aviation fuel prices do not release airlines from the obligation to pay compensation
In practice, this means that an increase in aviation fuel prices, even if significant and caused by a tense geopolitical situation, remains part of the business risk of conducting aviation operations. Airlines therefore cannot automatically rely on such circumstances to deny passengers the right to compensation for a cancelled flight.
Only situations in which the disruption results from a physical, documented lack of fuel or from administrative decisions, such as the closure of airspace, will be assessed differently. This distinction is important both for air carriers and for passengers seeking to enforce their rights under Regulation 261/2004.
Do you need support in matters concerning passenger claims, compensation for cancelled flights or air carrier liability? Contact us. We assist with assessing the merits of claims, analysing grounds for excluding liability and handling disputes under Regulation 261/2004.
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