Judgment of the Court (Seventh Chamber) of 16 January 2025.Flightright GmbH v Etihad Airways P.J.S.C.Reference for a preliminary ruling – Air transport – Regulation (EC) No 261/2004 – Article 8(1)(a) – Right to reimbursement of the cost of the airline ticket in the event of cancellation of a flight – Choice between reimbursement in money or in travel vouchers – Article 7(3) – Concept of the ‘signed agreement of the passenger’ – Loyalty account set up by the passenger on the air carrier’s website.Case C-642/23.

This judgment concerns the interpretation of passenger rights under EU Regulation 261/2004 regarding flight cancellations and ticket reimbursement methods. The Court clarifies when an airline can reimburse passengers with travel vouchers instead of cash.The judgment consists of two main parts: first, analysis of the concept of ‘signed agreement’ for voucher reimbursement, and second, examination of whether creating a loyalty account constitutes such agreement. The Court did not address the second referred question about revoking agreement for vouchers due to its answer to the first question.The key provisions interpreted by the Court are Article 7(3) and Article 8(1)(a) of Regulation 261/2004, which establish the framework for ticket reimbursement in case of flight cancellation. The regulation prioritizes cash reimbursement, while voucher reimbursement requires passenger’s signed agreement.The most important aspects of the judgment are:

• Cash reimbursement is the primary method, while vouchers are a subsidiary option requiring explicit passenger consent
• The ‘signed agreement’ doesn’t necessarily require a handwritten signature but must reflect passenger’s express, definitive and unequivocal acceptance
• Merely creating a loyalty account on airline’s website is not sufficient to constitute agreement for voucher reimbursement
• Airlines must provide clear and full information to ensure passengers can make an effective and informed choice between cash and voucher reimbursement

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