Flight Cancellations End With "We Refunded You"... Consumers Left to Bear Hotel and Rental Car Losses

Separate Compensation Difficult Even After Flight Cancellation Notice

Consequential Losses Remain Unaddressed

Record-High Fuel Surcharges Add to Ticket Burden

Increase in Consumer Agency Inquiries and Damage Relief Requests

As international oil prices rise, fuel surcharges have soared to record highs, and with airlines increasingly reducing the number of flights, concerns about consumer damage are growing. This is especially true as low-cost carriers (LCCs) cut back on less profitable routes to Southeast Asia and other destinations. In online communities, complaints are spreading, such as “My honeymoon flight disappeared” and “I was notified of a cancellation just two months before departure.” Even when flights are canceled for airline-related reasons, compensation is generally limited to alternative flights or refunds, with no additional compensation, meaning consumers are left to bear related losses such as hotel and rental car cancellation penalties.

Gasoline is being sold at 2,170 KRW per liter and diesel at 2,180 KRW per liter at a gas station in Seoul. Photo by Jinhyung Kang

On May 15, Yonhap News Agency conducted a fact-check, reporting that as a result of rising international oil prices, airlines are reducing service on less profitable routes, leading to a growing number of consumers reporting damage from flight changes and cancellations.

Recently, a series of reductions on short-haul international routes, particularly by LCCs, has heightened anxiety among travelers preparing for summer vacations and honeymoons. Many cases of sudden flight cancellations are being posted in online communities. One user complained, “I booked a flight from Incheon to Paris for my honeymoon, but received a cancellation notice just two months before departure.” Another user expressed concern, saying, “I’m worried my return flight will be canceled as well.”

Similar incidents have continued. Some travelers said, “My return flight was canceled, but since my trip was a month long, it’s difficult to cancel the whole trip.” Others lamented, “The price I paid for a round-trip ticket at the time of booking is now about the same as the current one-way fare.” Although refunds are possible when flights are canceled, it is often the case that securing a replacement ticket for the same schedule comes at a much higher cost.

Record-High Fuel Surcharges... North America and Europe Routes Near 1 Million Won Round Trip

The background of this airline ticket instability is the sharp increase in jet fuel prices and fuel surcharges. The fuel surcharge is determined based on the monthly average price of Singapore jet fuel from the 16th of two months prior to the 15th of the previous month; when the price exceeds 470 cents per gallon, the highest level, Step 33, is applied. This month, the international fuel surcharge reached the top Step 33. For some long-haul flights to North America and Europe, the round-trip fuel surcharge alone is reported to approach or even exceed 1 million won.

As the burden of fuel surcharges increases, airlines are reducing operations on certain routes to ease cost pressures. In particular, low-cost carriers that are vulnerable to fluctuations in jet fuel prices are starting to cut flights on less profitable routes such as Southeast Asia. Yonhap News Agency

With the burden of fuel surcharges growing, airlines are reducing operations on certain routes to ease cost pressures. In particular, LCCs, which are vulnerable to fluctuations in jet fuel prices, are cutting back first on less profitable routes such as those to Southeast Asia. According to the industry, since the Middle East crisis, the number of round-trip flights operated by LCCs has dropped by nearly 1,000. However, some note that the proportion of reductions compared to total flights is still not significant. For example, one airline reduced some international flights during May and June, but this represented only about 4% of its total international operations. If an airline cuts more than 20% of flights, it could risk losing route and slot rights, but no carrier has reached this threshold yet.

The reductions are mainly focused on routes with declining demand or high cost burdens. Recently, Southeast Asian routes have become the main target of cuts. In particular, some routes to Vietnam have seen airlines adjust operations first due to the high cost of refueling locally. In contrast, demand for routes to Japan and China remains solid, so the impact of reductions is expected to be limited. Airlines find it difficult to reduce service to Japan due to stable travel demand. Some travelers are also responding by saying, “With Southeast Asian flights unstable, we may have to change our destination to Japan or China.”

Airlines Charge Fees, But Is a Refund or One Free Change All You Get for Cancellations?

The biggest source of consumer backlash is the compensation issue. While penalties and fees are charged when travelers change or cancel their tickets, when flights are canceled due to airline reasons, compensation is usually limited to providing an alternative flight or a single free change or cancellation. In reality, even if penalties are incurred for canceling hotels, rental cars, or local tours due to flight cancellations, airlines have only limited obligations to compensate. With refunds for airline tickets being the main recourse, most consequential losses are ultimately borne by the consumer.

The biggest point of contention for consumers is the issue of compensation. While penalties and fees are charged when travelers change or cancel their tickets, compensation is limited when flights are canceled due to airline reasons, with only alternative flights or one free change or cancellation provided. The photo is not related to the specific content of the article. Photo by Jin-Hyung Kang

Some airlines reportedly claim that flight cancellations are due to force majeure, such as soaring oil prices and war in the Middle East. However, the Ministry of Land, Infrastructure and Transport views non-operation due to rising oil prices as a management decision by the airline. A ministry official explained, “While war may be a factor, suspending flights solely due to higher oil prices is a management issue for the airline. Since fuel supply has not been completely restricted, such cases do not constitute force majeure.”

If force majeure is recognized, airlines may have limited liability for passenger-incurred costs such as alternative transportation or accommodation. However, this does not eliminate the obligation to provide refunds, changes, or basic alternative flights. The ministry encourages airlines to offer alternative flights as close as possible to the originally booked times and to ensure refund procedures are not delayed for passengers who request them.

According to the Korea Consumer Agency, there were 349 consultations related to airline ticket cancellations and changes between March and April this year, a 56.5% increase from the same period in 2024 and a 13.7% increase from the same period in 2025. The agency advises that if alternative flights are not provided or the refund process is not smooth, consumers can seek mediation after consultation if necessary.

If You Receive a Flight Cancellation Notice, Check the Reason and Keep All Receipts

If you receive a flight cancellation notice, you should first confirm the exact reason for the cancellation with the airline. If guidance on alternative flights or refunds is insufficient, consumers can request it directly. If additional costs arise due to the cancellation—such as accommodation, transportation, or local itinerary changes—it is advisable to keep all related receipts and evidence.

With both the burden of fuel surcharges and flight reductions coinciding, the anxiety of travelers ahead of the summer peak season is unlikely to subside easily. Photo by Kang Jinhyung

If you have purchased travel insurance, check whether it includes coverage for flight cancellations or delays. For long-haul or peak season trips, considering a major airline, which is more likely to secure alternative flights, may be a good option. However, under the current system, consumers generally have to bear most costs beyond the ticket refund, such as hotel cancellation fees, rental car cancellation charges, and losses from local tours. With the dual impact of rising fuel surcharges and flight reductions, travelers ahead of the summer peak season are unlikely to see their anxieties eased any time soon.

This content was produced with the assistance of AI translation services.