June 11, 2026
Author: Lawyer Enrico Germano
At this time, when many families are planning their summer vacations, many are wondering whether their flight will be confirmed or canceled due to the increase in kerosene prices, a direct consequence of the closure of the Strait of Hormuz and the ongoing war in the Persian Gulf.
Generally speaking, the answer is yes, and airlines can indeed cancel a flight, but not “simply” without consequences or obligations to passengers, even if the reason is the increase in the cost of kerosene.
In fact, airlines can cancel a flight for various economic or operational reasons, including sudden increases in costs (such as fuel), low demand, or network reorganization. There is no law that prohibits cancellation for cost reasons.
For flights departing from Switzerland, rules very similar to European Regulation (EC) No. 261/2004, which has also been implemented in the Swiss system, apply. In practice, if your flight is canceled, the passenger is entitled to a full refund or an alternative flight, assistance (meals, hotel if necessary), and possibly even compensation (approximately €250–600), unless the airline demonstrates “extraordinary circumstances.”
Pursuant to Article 8 of Regulation (EC) No. 261/2004, as interpreted by the Court of Justice of the European Union (see ECJ, Case C-83/10 of 13 October 2011, Sousa Rodríguez; ECJ, Joined Cases C-402/07 and C-432/07 of 19 November 2009, Sturgeon), the passenger is entitled to a refund of the ticket in the event of flight cancellation, regardless of whether they are entitled to financial compensation.
This regulation also applies to flights departing from Switzerland under the EU-EFTA agreements. Essentially, whether you depart from Zurich or Milan Malpensa airports makes little difference in terms of reimbursement.
It’s legitimate to ask whether the increase in fuel prices is considered “extraordinary circumstances.”
European case law (e.g., decisions of the Court of Justice of the European Union) tend to consider internal company problems (costs, organization, maintenance) as exceptional circumstances, while unforeseeable external events (such as extreme weather or traffic control strikes) are considered exceptional.
Therefore, simply increasing the price of kerosene is not enough to avoid compensation.
What happens in the event of a last-minute cancellation?
If a flight is canceled at the last minute, passenger rights become much stronger. For flights departing from Switzerland, rules like those of Regulation (EC) No. 261/2004 apply, meaning re-routing or a refund (at the passenger’s option) is provided, and the airline must offer an alternative flight as soon as possible, including with another airline if necessary, or a full refund of the ticket.
If the cancellation occurs less than 14 days before departure, especially in the last hours (e.g., the same day), the passenger is entitled to compensation between €250 and €600, depending on the flight distance.
The airline is not required to pay if it can prove that the cancellation was due to extraordinary circumstances, such as extreme weather, airspace closures, or air traffic control strikes. However, issues such as operating costs (including fuel), ordinary technical failures, or crew shortages are generally not considered extraordinary according to the Court of Justice of the European Union.
For flights departing from a Swiss airport, compensation follows virtually identical rules to Regulation (EC) No. 261/2004, which also applies in Switzerland. Financial compensation (standard) depends on the flight distance:
- Up to 1,500 km → €250
- Between 1,500 and 3,500 km → €400
- Over 3,500 km → €600
The airline may reduce the compensation by 50% if it offers an alternative flight arriving slightly later than the original time (variable limits: 2–4 hours depending on the distance).
Compensation is not available if the passenger is informed more than 14 days in advance, or between 7 and 14 days in advance but with a similar alternative, or less than 7 days in advance but with an alternative flight very close to the original time, or if there are exceptional circumstances (extreme weather, security, etc.).
However, the European Commission itself is considering considering the kerosene shortage as an exceptional circumstance and therefore allowing the airline to withhold financial compensation, which ranges from €250 to €600.
