Ryanair is to appeal after losing an attempt to overturn a court ruling that it must pay compensation to passengers affected by strike action.
Tens of thousands of passengers were affected when flights were cancelled due to a series of walkouts by pilots and cabin crew in the summer of 2018.
The budget carrier claimed it was exempt from awarding compensation because the disruption was due to “extraordinary circumstances”.
But the Civil Aviation Authority disagreed and took legal action against the airline.
The High Court rejected Ryanair’s position in April 2021 and the Court of Appeal dismissed its attempt to overturn the decision on Wednesday.
At the time of the disruption, passengers whose short-haul flights to or from UK airports were cancelled within 14 days of the departure date were entitled to up to €250 euros (£208) of compensation based on the timings of alternative flights offered. The current maximum amount of compensation is £220.
Lord Justice Newey, who heard the appeal with two other judges, said: “The strikes from which the cancellations arose, relating as they did to employment conditions of employees of Ryanair, did not constitute extraordinary circumstances whether or not the aims of the strikers were reasonable or achievable and notwithstanding the involvement of trade unions.”
CAA consumers and markets director Paul Smith said: “We are committed to protecting the rights of air passengers and are determined to ensure all airlines comply with their legal obligations.
“We would like to advise consumers that Ryanair may seek to appeal this judgment to the Supreme Court.
“Affected customers should therefore await further information before pursuing their claims.
“Given consumers have been waiting for clarity on this subject since 2018, this process reinforces the need to modernise our powers.”
Ryanair later confirmed it was seeking a further appeal.
A statement from the airline said: “We have instructed our lawyers to appeal this decision.”
The CAA can take legal action against airlines generally relies on holding discussions with carriers when it is concerned about their actions.
The aviation regulator said in July 2020 this approach led to all airlines offering cash refunds for flights cancelled due to the pandemic, after some passengers complained they could only receive vouchers.
The Department for Transport launched a consultation this week on plans to give the CAA the power to directly fine domestic airlines for breaching consumer laws.
Which? Travel editor Rory Boland said: “Ryanair has tried every trick in the book over more than three years to wriggle out of its legal obligations and it is no surprise to see the court has ruled against it.
“The company must now finally do the right thing and pay its passengers the compensation they are owed, as well as improving its customer service and complaints handling procedures going forward.
“This episode underlines why reform of the travel sector is so badly needed.
“The government must press ahead with plans to give the CAA stronger powers – including the ability to fine airlines like Ryanair when they consistently flout the rules.”