CAA sets out ‘clear expectations’ to airlines with fuel challenges

The UK Civil Aviation Authority (CAA) has contacted airlines to set “clear expectations” for operations during any fuel supply challenges, warning carriers that rising jet fuel prices would be unlikely to count as “extraordinary circumstances” when cancelling flights.

 

Anna Bowles, head of consumer protection at the regulator, wrote a letter in which she aimed to “remind industry of its existing obligations and encourage continued focus on passenger needs”, citing the requirements of Assimilated Regulation (EU) No 261/2004 (‘UK261’).

 

She said cancelling flights or consolidating schedules because of jet fuel prices would be unlikely to count as “extraordinary circumstances” in the context of UK261, while pricing rules would mean jet fuel surcharges could not be applied to flight-only bookings.

 

She added: “We note that for package holidays only, price increases may be permitted in limited
circumstances under the Package Travel and Linked Travel Arrangements Regulations
2018 (‘PTRs’).

 

“However, where consumers are offered a ‘price promise’ at the time of booking that the price of their package will not increase, we expect terms and conditions to reflect this and consider that price increases under PTR Regulation 10 would not be permissible.

 

“Where these rules are breached, consumers may have rights to refunds, cancellation or
other redress.”

 

UK261 provides a right to fixed-sum compensation for passengers where they receive less than 14 days’ notice of their cancellation unless the airline can show the cancellation resulted from extraordinary circumstances which could not have been avoided even if all reasonable measures had been taken.

 

Bowles wrote: “While appreciating that the rising price of jet fuel creates significant operational challenges for airlines, the view of the CAA is that decisions by airlines to cancel flights or consolidate schedules for operational or commercial reasons (including fuel prices) would not constitute extraordinary circumstances.

 

“We also expect that airlines will typically be able to provide affected passengers with at least 14 days’ notice of such decisions, in which case fixed-sum compensation would not apply.”

 

She added: “Where flight cancellations arise due to fuel shortages, the position is likely to be more complex.

 

“Where it is clear that a cancellation is directly due to a fuel shortage at the airport which prevents the flight from departing, this may be considered extraordinary circumstances. 

 

“However, where there are multiple considerations driving an airline’s decision to cancel a flight (for example, where fuel restrictions mean that some flights operate and others do not), whether the circumstances are extraordinary would depend on the specific facts of each cancellation and would need to be assessed on a case-by-case basis.

 

“We advise airlines to maintain good records of the specific circumstances surrounding each cancellation.”

Airlines were also reminded of the need to only sell flights which are expected to operate.

 

“Increasingly, airlines are highlighting a risk of flight cancellations over the summer months,” Bowles wrote.

 

“We expect airlines to be mindful of not offering flights for sale where there is a reasonable expectation that those flights will not operate.

 

“We specifically note that under the Digital Markets, Competition and Consumers Act 2024 (‘DMCCA’), consumers must be given all the information they need to make informed decisions, in a clear and timely way, which could include information about the likelihood of flights not operating.

 

“In addition, the DMCCA may also be breached if there are reasonable grounds for believing that it will not be possible to offer flights advertised at a specific price in reasonable quantities and this is not made clear.”

 

When airlines consolidate flight schedules, Bowles said UK261 requires priority to be given to people with reduced mobility as well as any accompanying them or their service dogs. Priority must also be given to unaccompanied children.

 

Where flight cancellations are unavoidable, Bowles wrote, passengers should be given as much notice as possible of the cancellation.

 

“Timely notification allows customers to make alternative arrangements, reduces distress and inconvenience, and helps maintain confidence in the aviation industry,” she wrote.

 

“Even where decisions are taken at short notice, we expect airlines to communicate with customers clearly and promptly.”

 

She added: “We recognise the significant pressures facing the sector and do not underestimate the complexity of operating in the current environment.

 

“However, placing passengers at the centre of decision-making and communication, as well as upholding their rights, is critical to maintaining trust and protecting consumers during periods of disruption.

 

“We appreciate your continued cooperation and commitment to supporting passengers during this challenging period.”