Airline Required to Refund Commission after Cancelling Flight
The European Court of Justice (ECJ) has issued a decision regarding whether travel agencies should be reimbursed for commissions on flights that are cancelled.
In the case at hand, multiple travellers had acquired return flight tickets from Austria to Peru with KLM through the Opodo booking platform. Following the cancellation of the flights, the airline reimbursed the passengers for the fare paid, deducting the commission retained by the travel agency.
Consumer group confirms: Passengers are eligible for a refund
The passengers involved sought reimbursement through a consumer protection association. The association presented its case before the Austrian courts, asserting that the airline is also required to reimburse the agency commission levied on the passengers by the travel agency acting on behalf of the airline in this instance.
The airline maintained that it was not informed of either the existence or the value of the commission.
ECJ: Refund must include the agency commission
The Austrian Supreme Court (Oberster Gerichtshof, OGH), in submitting a request for a preliminary ruling to the ECJ, noted that the ECJ had previously addressed the extent of passengers’ rights to reimbursement of agency commissions, holding that such commissions must be included in the refund unless they were set without the airline’s knowledge. Nonetheless, the interpretation of this exception remains open to differing views.
The ECJ has clarified that when an airline authorises an agent to issue and sell flight tickets on its behalf and for its account, it is deemed that the airline possesses knowledge of the agent’s business practice of charging an agency commission.
The commission amount does not matter to the airline
Accordingly, the commissions should be considered as authorised by the airline, since they represent an integral element of the air fare. It is not essential for the airline to be aware of the exact commission amount, as requiring such knowledge could compromise the passenger protections intended by the EU legislature and diminish the value of agency services.
ECJ C-45/24 (15 January 2026)