Spanish Consumer Group Challenges Airline Volotea's Fuel‑linked Surcharges

Spanish consumer group challenges airline Volotea's fuel‑linked surcharges

Facua questions legality and transparency of Volotea's new fuel surcharge policy

MADRID, April 20 (Reuters) - Spanish consumer rights group Facua on Monday called for an investigation into low-cost airline Volotea's new pricing policy, which links ticket prices to fuel costs, potentially adding a post-purchase surcharge of up to 14 euros ($16.50) per passenger, per flight.

Background: Volotea's fuel-linked pricing policy

Volotea, based in Spain's northern Asturias region, introduced the temporary policy on March 16 after oil and jet fuel prices surged due to the U.S.-Israeli war on Iran and said 97% of customers had since chosen to proceed with their travel plans. It's the first Spanish carrier to implement the surcharges, according to Facua.

Consumer group response and legal concerns

Facua's call for investigation

Facua urged Spain's Consumer Affairs Ministry to review the policy, arguing it might violate consumer protection laws that prohibit altering ticket prices after purchase, whether the adjustment results in an extra charge or a refund. A spokesperson for the ministry told Reuters it had received Facua's complaint and would study it. 

Support from European Consumer Organisation (BEUC)

Facua's stance is supported by the European Consumer Organisation (BEUC), which cited EU transparency rules requiring airlines to disclose all charges in the final ticket price up front. BEUC said that passengers holding valid tickets have the right to board without incurring subsequent surcharges.

Volotea's response and policy details

Scope and transparency of the surcharge

Volotea said on Monday that the measure applied only to bookings made after it took effect on March 16, and passengers who bought tickets earlier were not affected.

The airline added that it complied with European and Spanish consumer rules because passengers were informed before purchase, while the adjustment was automatic and linked to an external benchmark. The mechanism was transparent, did not aim to generate profit and was based on the Brent crude price and a predefined table rather than airline discretion, Volotea said.

Volotea's "Fair Travel Promise"

Volotea had earlier said its "Fair Travel Promise" policy aimed to "offer greater flexibility and transparency to passengers amid volatile energy costs," underscoring that it allows passengers to change or cancel bookings free of charge up to four hours before departure.  

How the fuel surcharge mechanism works

Adjustment process and refund policy

Under the policy, the airline reviews publicly available fuel prices seven days before departure and adjusts fares, adding the surcharge if prices rise above a certain reference level, or refunding the difference if prices fall.

Surcharge and refund thresholds

According to a table provided by Volotea, the maximum surcharge corresponds to oil prices in excess of $105 a barrel. No charges apply if oil prices are in the $65-$75 range, and passengers would receive refunds ranging from partial to complete if oil drops below $65 per barrel. 

($1 = 0.8499 euros)

(Reporting by Emma Pinedo; Additional reporting by Joanna Plucinska and David Latona; Editing by Aurora Ellis and Ethan Smith)