German Court Rules Airlines Can Sell Tickets Without Cancellation Rights

Germany's Federal Court of Justice (Bundesgerichtshof) has confirmed that airlines are permitted to sell inexpensive flight tickets without offering customers the right to cancellation or refund. The ruling disappoints travelers seeking reimbursement for flights cancelled due to acute illness.

The case involved passengers who sought to reclaim approximately €2,500 from Lufthansa AG for tickets purchased for nearly €2,800 in November 2014. The fare conditions stipulated that "cancellation of the tickets is not possible. Unused taxes and fees are refundable. The international/national surcharge is not refundable."

The passengers cancelled their flights in March 2015 due to illness and demanded a refund of the ticket price. Lufthansa only reimbursed the saved taxes and fees, amounting to a small sum. The passengers' subsequent lawsuit for the remaining difference was unsuccessful in all court levels.

The court reasoned that while German contract law generally allows for contract termination, the airline's conditions effectively waived this right. The judges found that excluding the right to cancel did not constitute an unreasonable disadvantage to passengers, aligning with the principles of contract fulfillment. Airlines incur primarily fixed costs, which do not significantly decrease if a single passenger does not travel. For individual travelers to ensure reimbursement upon cancellation due to sickness, they must either purchase a more flexible, higher-priced ticket or secure separate travel insurance.

The decision emphasizes that passengers wishing to protect themselves against the cost of cancellations must either opt for more expensive flexible tickets or obtain appropriate insurance coverage.