EU says high fuel prices should not be considered 'constituting extraordinary circumstance'

The European Commission said Friday that high fuel prices linked to the Middle East crisis should not be considered an "extraordinary circumstance" allowing airlines to avoid compensating passengers for flight cancellations.

In guidance issued to the EU transport and tourism sectors, the commission clarified that passengers affected by flight cancellations remain entitled to reimbursement, re-routing, assistance at airports, and compensation for last-minute disruptions under EU air passenger rights rules.

Airlines may only be exempt from paying compensation if they can prove cancellations were caused by extraordinary circumstances, such as a local fuel shortage, the statement said. However, it stressed that rising fuel prices alone do not qualify for such an exemption.

The guidance comes amid ongoing fuel supply disruptions and the closure of some air and shipping routes linked to tensions in the Middle East.

To help airlines cope with possible jet fuel shortages, the EU Commission said carriers could be exempted from the EU's 90% fuel uplift obligation under ReFuelEU Aviation rules in cases where safety regulations require additional fuel loading.

The European Union Aviation Safety Agency (EASA) also issued a Safety Information Bulletin on the safe use of Jet A aviation fuel in Europe.

In addition, the commission adopted a temporary state aid framework allowing EU member states to support road, rail, inland waterways, and maritime transport sectors affected by high diesel prices and other crisis-related disruptions.

Jet fuel prices in Europe have risen sharply since last year as the conflict in the Middle East and disruptions to shipments through the Strait of Hormuz pushed up oil and natural gas prices.

EU refineries normally cover around 70% of the bloc’s jet fuel demand, while the remainder is largely imported from the Middle East and Gulf countries.

Several European airlines have already come under pressure from higher fuel costs. Dutch carrier KLM said it would cancel 160 intra-European flights this month, while Germany’s Lufthansa announced plans to halt operations of its CityLine subsidiary and cancel 20,000 short-haul flights scheduled through October due to rising jet fuel prices.