Jet2.com parent makes provision for compensation claims
Jet2.com’s parent company Dart Group will set aside £17 million in its current financial year to cover potential historical claims arising from last week’s Supreme Court decision.
In a statement to investors, it said the company’s Board estimates the legislation may cost the group a further £3m-£5m a year.
"The Board is currently further reviewing its options to mitigate the future financial impact on its air travel operations," it said.
The Supreme Court confirmed on Friday that it has turned down appeal applications from Jet2 and Thomson in two landmark flight delay cases.
The decision opens the doors for thousands of passengers to make compensation claims against airlines.
In the case of Huzar V Jet2, the court has ruled that airlines must pay flight compensation for qualifying delays caused by technical problems as these are not considered an ‘extraordinary circumstance’ under flight compensation regulation EU261.
An estimated 2.36 million passengers per year in England and Wales are set to benefit from the decision, equivalent to approximately £876 million in compensation claims.
Airlines have warned that fares will ultimately rise following the rulings and have urged the EU to carry out major reforms.
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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