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"Cancellation Penalty of 1.25 Million Won" ... The Foreign Airline with the Highest Consumer Complaints

42% of International Airline Passenger Disputes... Covered by 6 Airlines
Most Cases Involve Ticket Refund Refusals and Excessive Penalty Charges

#Mr. A purchased 7 round-trip tickets from Seoul to Phu Quoc through foreign airline B in April for 7.68 million KRW. The problem arose afterward. When Mr. A canceled the tickets and requested a refund the day after purchase, B deducted about 1.26 million KRW, approximately 15% of the purchase price, as a fee and refunded the remainder. Mr. A claimed the fee was excessive and requested a full refund from B, but the request was ultimately denied.

"Cancellation Penalty of 1.25 Million Won" ... The Foreign Airline with the Highest Consumer Complaints The scene of Incheon International Airport Terminal 1 crowded with passengers last August. [Image source=Yonhap News]

As demand for overseas travel recovers, complaints against foreign airlines continue to be filed, requiring caution.


"Cancellation Penalty of 1.25 Million Won" ... The Foreign Airline with the Highest Consumer Complaints

The Korea Consumer Agency announced on the 4th that the number of consumer complaints related to air passenger transport services received from last year through the first half of this year totaled 2,863 cases. Among these, domestic airlines accounted for 1,440 cases, while foreign airlines accounted for 1,243 cases.


However, the number of complaints per 100,000 passengers was about three times higher for foreign airlines at 3.6 cases compared to 1.2 cases for domestic airlines. Additionally, the settlement rate for complaints against foreign airlines was 51.2%, about 9 percentage points lower than the 59.9% for domestic airlines.


Nearly half (41.8%) of the complaints against foreign airlines were filed against six carriers, including VietJet Air. The airlines with the most complaints were VietJet Air, Philippines AirAsia, Thai AirAsia X, Philippine Airlines, Etihad Airways, and Turkish Airlines, in that order.


Examining the types of complaints for the top six foreign airlines, "refusal to refund tickets and excessive penalty charges" accounted for the largest share at 60.6% (315 cases), followed by "flight cancellations and delays" at 22.5% (117 cases), "damages caused by insufficient information provision" at 3.7% (19 cases), and "damage or loss of checked baggage" at 3.3% (17 cases).


Among these, refusal to refund tickets and excessive penalty charges often involved cases where penalties were excessively charged immediately after purchase cancellation or refunds were outright refused. Many cases were also filed due to delayed refunds during the COVID-19 pandemic caused by financial difficulties.


Regarding flight cancellations and delays, many cases involved unilateral refusal of compensation without detailed explanations for the reasons. Most complaints arose because appropriate measures, such as prior notification to passengers or provision of rest areas during cancellations or delays, were not taken.


The Consumer Agency recommended that the airlines establish policies to protect consumers who mistakenly purchase tickets or request cancellations shortly after purchase. It also encouraged airlines to take measures to minimize passenger inconvenience during flight cancellations or delays and to provide specific reasons for such disruptions.


A Consumer Agency official advised, "Before purchasing tickets, consumers should check the cancellation policies and penalty regulations, and after purchase, they should frequently check for any changes in flight schedules. After receiving checked baggage, consumers must inspect for any damage or loss and immediately notify the airline if any issues are found."


© The Asia Business Daily(www.asiae.co.kr). All rights reserved.

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