Travel agency error vs. air carrier liability – CJEU on the right of recourse

The CJEU has confirmed that an air carrier may be required to pay compensation to a passenger under Regulation (EC) No 261/2004, even where the issue was caused by an error on the part of a travel agency. However, this does not mean that the carrier must ultimately bear the economic burden- it retains the right to recover these costs from the tour operator by way of recourse.

Liability towards the passenger vs. the actual source of the damage

In the context of package travel, passengers are typically in direct contact with the travel agency, while the air carrier performs the flight itself. The issue arises when the tour operator provides the passenger with incorrect information regarding a flight change or cancellation. Relying on such information, the passenger fails to appear at the airport, even though the flight operates as scheduled. From an operational perspective, the carrier has performed the service correctly.

However, from the perspective of passenger rights, a claim for compensation may still arise. It is precisely in such situations that the tension becomes apparent between formal liability towards the passenger and the actual responsibility for the occurrence of the damage.

CJEU: the air carrier as the primary addressee of the passenger’s claim

The CJEU adopted a clearly pro-consumer approach- a passenger may claim standardised compensation directly from the operating air carrier, even if the issue was caused solely by an intermediary or the tour operator.

From a business perspective, this means that the carrier becomes the first entity to bear the financial burden, regardless of whether it was actually at fault. While this approach strengthens passenger protection, it simultaneously shifts the economic burden onto the airline despite the absence of fault. It is precisely in such cases that the right of recourse becomes critical.

Right of recourse – how the carrier can recover costs from the travel agency

The key practical takeaway from the CJEU’s ruling is clear: the obligation to compensate the passenger does not prevent the carrier from recovering the full amount of costs incurred from the travel agency.

This means that the carrier does not have to accept a situation in which it bears the financial consequences of another party’s error. On the contrary, it should actively pursue recourse against the tour operator if its actions or omissions led to the passenger’s claim.

Does your company pursue recourse in cases involving travel agency errors?

From a business perspective, this requires a proactive approach to pursuing recourse claims. A well-structured process can significantly reduce the impact of counterparties’ errors on operational performance.

We support air carriers in assessing the validity of claims and in effectively recovering costs- both at the pre-litigation stage and in court proceedings. Should you require assistance, please do not hesitate to contact our team.