North American Airlines Abolish Cancellation Fees: A Trend for Australian Carriers to Consider?

Airlines in North America have taken a bold step by axing cancellation fees for their flyers, a move that has caught the attention of Australian travellers. Last week, Spirit and Frontier Airlines announced plans to eliminate extra costs associated with flight cancellations or changes to win back frustrated passengers.

The Shift Away from “Junk Fees”

The decision to scrap these fees comes in the wake of a broader crackdown on so-called “junk fees.” The issue has even reached the highest levels of government, with the White House taking notice. President Joe Biden emphasised the importance of protecting passengers from surprise charges, stating, “Too often, airlines drag their feet on refunds or rip folks off with junk fees.”

Australian Advocacy Calls for Change

 Adam Glezer, founder of the local advocacy business Consumer Champion, lauded North American Airlines’ move in Australia. He believes that eliminating cancellation fees is a brilliant strategy Australian airlines should adopt. “It gives consumers flexibility,” Glezer explained. Travellers can book flights with the confidence that they will be looked after if anything changes. Australian airlines capitalise on the need for changes, resulting in excessive passenger costs.”

Spirit Airlines Leads the Way

Under Spirit Airlines’ new policy, customers can cancel flights up to an hour before their scheduled departure without incurring fees. The convenience extends to the airline’s app, making the process hassle-free. Additionally, if a flight is cancelled within 24 hours of booking or the departure date is more than a week away, Spirit offers a full refund. A spokesperson for Spirit emphasized that these changes are part of the airline’s strategy to return to profitability following the challenges posed by the COVID-19 pandemic.

Pressure on Other Airlines

Glezer predicts that Spirit’s move will pressure other North American airlines to follow suit. He sees it as a potential model for Australia, where consumer protections related to airlines need improvement. “As it stands now,” he said, “Australians find themselves in a precarious position when they have to cancel or change flights. Our airlines must prioritise consumer interests over maximising profits.”

Qantas Faces Criticism

While Qantas invests millions in upgrading customer service and loyalty programs, Australian travellers still face steep cancellation costs. Details on Qantas’ website reveal substantial flight cancellation fees, varying by destination. Change fees range from $10 to $77, depending on factors such as booking method (airport vs. contact centre). Fortunately, Qantas frequent flyers can cancel without additional charges.

Virgin and Jetstar

Virgin’s website discloses cancellation and change fees, including a $99 charge and fare difference. However, Virgin offers flex tickets with no extra fees. Jetstar imposes a $50 refund fee for domestic flights and potentially higher fees on international routes to Japan. According to information buried on Jetstar’s website, change fees can soar to around $70 for domestic flights. Meanwhile, Regional Express (Rex) charges $44 plus the fare difference for flight changes, with an additional $44 fee for cancellations.

As the global travel landscape evolves, Australian airlines face mounting pressure to prioritise passenger needs and reconsider fee structures. Whether they follow the North American example remains to be seen, but travellers hope for a future where flexibility and fairness prevail.