CJEU: Passengers Entitled to Full Ticket Refund Including Intermediary Commission for Cancelled Flights

Requirements for airlines regarding compensation for cancelled flights have become even stricter following a recent ruling by the Court of Justice of the European Union (CJEU) [1]. Airlines must reimburse passengers for the full price of the ticket at which it was purchased, even if a portion of that price consists of a commission charged by a flight-booking intermediary.

Background of the Case

The passengers had purchased KLM tickets through the Opodo portal, a certified travel agency authorized to issue tickets on behalf of KLM. Following a flight cancellation, the airline refunded only part of the ticket price, deducting approximately EUR 95, which Opodo had charged as an intermediary commission. The passengers assigned their claims for a full refund to the Austrian Association for Consumer Information (VKI), and the case eventually reached the Austrian Supreme Court.

The Austrian court referred a preliminary question to the CJEU concerning the interpretation of Regulation (EC) No 261/2004, which establishes common rules on compensation and assistance to passengers in the event of denied boarding or cancellation. The CJEU was asked to assess:

• Whether reimbursement for a cancelled flight must include the commission collected by an intermediary if the carrier is aware that a commission is charged but does not know the exact amount in a specific case.

• Who bears the burden of proof regarding the carrier’s knowledge of such a commission.

The Court’s Ruling

KLM’s argument—based on the claim that it was unaware of the existence or the exact amount of the commission charged by Opodo—did not hold up before the CJEU. The Court built upon its earlier judgment in Dirk Harms and Others v. Vueling Airlines SA, where it ruled that the price used to calculate a refund must include the intermediary's commission if the carrier was aware of the intermediary's involvement. An exception would only apply if the commission was set without the airline's knowledge [2].

According to the CJEU, the purchase of a ticket represents a single transaction, of which the intermediary's commission is an integral part. If an airline grants prior consent to an intermediary to issue tickets in its name and on its account, it is presumed to be aware of the intermediary's business model, which involves collecting a commission. The airline does not need to know the exact amount of the commission to be liable for its refund.

Impact on the Market

The Court noted that a contrary ruling would complicate the claims process for passengers and lower the overall level of consumer protection. It would also likely lead to a decline in consumer interest in using third-party booking portals. Airlines, however, retain the right to seek recourse (redress) against the intermediary to recover the amount of the commission paid out to the passenger.

[1] Court of Justice of the European Union, Case C-45/24, Verein für Konsumenteninformation v. Koninklijke Luchtvaart Maatschappij NV, judgment of January 15, 2026, ECLI:EU:C:2026:2.

[2] Court of Justice of the European Union, Case C-601/17, Dirk Harms and Others v. Vueling Airlines SA, judgment of September 12, 2018; ECLI:EU:C:2018:702.

This text was translated by AI