Latest News

Spanish consumer group challenges Volotea’s fuel-related surcharges

Facua, a Spanish consumer group, demanded an investigation on Monday into the low-cost carrier Volotea’s new pricing policy that links ticket prices with fuel costs. This could result in a possible post-purchase charge of up to 16 euros.

Volotea in Spain's northern Asturias region introduced the temporary policy a few days ago after oil & jet fuel prices soared because of the U.S. - Israel war on Iran. The company said that 97% customers have since decided to continue with their travel plans. Facua reports that it's the first Spanish airline to implement surcharges.

Facua asked Spain's Consumer Affairs Ministry (Ministry of Consumer Affairs) to review this policy. They argued that it could violate consumer protection laws which prohibit "altering ticket prices" after purchase. The ministry's spokesperson confirmed that it received Facua’s complaint and will study it.

The?European Consumer Organisation(BEUC) supports Facua, citing EU transparency rules that require airlines to disclose upfront all charges included in the final ticket cost. BEUC stated that passengers with valid tickets are entitled to board the aircraft without any additional charges.

Volotea announced on Monday that the measure only applied to bookings made after March 16th, and that passengers who purchased tickets before then were not affected.

The airline said that the mechanism was transparent, did not aim to generate profit and was based on a predefined table and Brent crude price rather than airline discretion. Volotea stated that the mechanism was transparent and did not seek to make a profit. It was based upon the Brent crude price, a predefined chart, and not airline discretion.

Volotea's "Fair Travel Promise", a policy that aims to offer "more flexibility and transparency to passengers in the face of volatile energy prices", has stated earlier. It allows passengers to cancel or change their bookings up to 4 hours before departure.

According to the policy, seven days prior to departure, the airline will review publicly available fuel prices and adjust fares. If prices rise above a certain level of reference, the airline may add a?surcharge upto 14 euros per person per flight, or refund the difference in case prices drop.

Although Volotea refused to give oil reference prices,?Facua stated that the maximum surcharge corresponds to oil prices above $105 per barrel. Oil prices between $65 and $75 are exempt from surcharges, but passengers may receive refunds of $30 if the price drops below this level.

(source: Reuters)