Flight refund: Your rights in case of cancellation

Plane ticket refund: Breakdown of costs

To enable you to better understand the complicated terms regarding ticket refunds, we have outlined below the key components which a flight ticket consists of. According to the judgment C-290/16, made by the European Court of Justice on July 6, 2017, the airlines must list these items individually:

• Actual ticket price or base fare: the actual price charged by the airline for the transport from A to B.
• Processing or service fee: the cost of issuing and distributing the flight ticket. Travel agencies receive this, as of 2004, instead of a commission.
• Taxes and fees: costs that an airline passes on to third parties, such as the airport. These include customs and security fees as well as taxes imposed by certain countries. The fees include the luggage charge, which is not included in the base fare for low-cost airlines.
• Transaction fees: fees paid due to bank transfer.
• Fuel surcharges: the costs incurred per passenger for aircraft fuel. The fuel surcharge should actually be included in the ticket price as it will not be passed on to third parties. Nevertheless, it is connected with "Taxes and Fees".
• Additional fees: these include personal services (on-board service and meals).

Flight ticket cancellation: Fees to be refunded

In the event you cancel your ticket, the airline must refund you the following amounts in full:

• Airport taxes and fees
• Security taxes and duties
• Fuel surcharges

The majority of the above fees are transferred to third parties, such as airports, and must only be paid when the passenger takes the flight. This is applicable even in case where you have purchased a “non-refundable” ticket. Fuel surcharges are neither a tax, nor are they handled by third parties. However, this cost must be completely reimbursed by the airline, because if you do not fly, you are not using fuel.

The following amounts will not always be refundable:

• Actual ticket price
• Transaction fees

The ticket price will not be refunded to the passenger when the airline has specified this within its terms and conditions. If they have not stated such specifications, the airline must prove that they were unable to resell your ticket. When they cannot provide evidence of this, 95% of the ticket price must be refunded to you. Any transaction fees included in bank transfers when buying your ticket will not be repaid.

Ticket cancellation: The BGB German civil code

The BGB German Civil Code provides a legal basis in the event you cancel your flight ticket. In accordance with the judgment of the Federal Court of Justice in Germany, on February 16, 2016, purchasing a ticket from an airline is the equivalent of signing a work contract with a company.

The Civil Code grants you the right to cancel a booked flight at any time. In turn, the airline has the right to demand the agreed remuneration as stated at the time of purchase and in their terms and conditions. It is assumed that the airline may withhold 5% of the ticket price for expenses related to the cancellation process.

Can you get a refund on flights: Claim deadlines

The statutory time limits for taxes and fees vary across the EU, depending on the country. In Germany, the right to claim for compensation ends after 3 years, whereas in the UK, the deadline is 6 years.

So, you do have enough time to assert your claims and there is no need to rush or panic in the middle of your trip. Of course, it is always a good idea to start the claim process as soon as you can, so can make sure none of your important documentation is lost or mislaid.

Ticket refund claim: Required documents

To ensure you receive the ticket refund you have the right to, there are certain documents that are required in order to provide proof to the airline and, if necessary, in court. For this reason, these documents must be filed safely, to guarantee nothing is misplaced. As a rule, your booking confirmation, which states the ticket fare, plus the passenger names, are sufficient. It is important to note that the refund request can only be made by the person who paid for the flights.

All necessary documents for your refund request are listed below:

Flight cancellation refund: How to claim

When enforcing your claim on your own, it is necessary to follow certain steps and procedures.

Step 1. Cancel the flight in writing, either by mailing a letter or via email, as soon as you know you will not fly. The sooner you cancel, the higher the chance the airline is able resell your ticket and a refund of up to 95% of the ticket price will be provided to you. It is recommended to set a deadline for this reimbursement – 2-3 weeks is the regular period.

If you decide to mail the letter, use registered post as this will prove when the airline received it. This can be used as strong evidence for your case, in the event it goes to court.

The letter should include the following: