CJEU: airlines must refund ticket prices including agent’s commission

The case concerned several passengers who purchased tickets for a return flight with KLM from Vienna to Lima through the booking portal of online travel agency Opodo. After the flights were cancelled, KLM refunded them only the amount corresponding to the ticket price after deducting approximately EUR 95, which Opodo charged as an agency commission.

The passengers then assigned their rights to a consumer organisation and sought a refund of the full ticket price, including the commission. They argued that it was an integral part of the ticket price paid by the passengers. KLM, on the other hand, defended itself by arguing that it was not aware of the amount of the commission and was therefore not obliged to refund it.

The Austrian Supreme Court referred the matter to the CJEU, which had previously ruled that if a ticket is sold through an agent, the commission should be included in the refund if the airline was aware of it. An exception would only apply if the commission was set without the airline's knowledge.

In this subsequent judgment, however, the CJEU clarified that if an airline has agreed to allow an agent to sell tickets on its behalf and for its account, it can be assumed that it is aware of the common practice of charging commission. This commission is an integral part of the ticket price and is therefore considered approved by the airline. It is not necessary for the airline to know the exact amount of the commission. Otherwise, the protection of passengers guaranteed by EU legislation would be reduced and the attractiveness of purchasing tickets through various agents would be diminished at the same time.

As a result, while the options of airlines to not pay compensation to passengers are becoming more limited, their options to claim compensation for damages (recourse) corresponding to the commission paid to agents are expanding accordingly.