Can compensation be paid out in another currency?
Aggrieved passengers are often entitled to financial compensation of up to € 600 for delayed or cancelled flights. Can this compensation also be paid out in a currency other than Euros? The European Court of Justice answered this question in a recent ruling.
About the lawsuit
A Polish passenger flew to Warsaw (Poland) with Smartwings Poland. This flight was delayed for over three hours. For that reason, the Polish passenger was entitled to financial compensation of € 400.
In accordance with Regulation 261/2004, the Polish passenger asked the Polish judge to order Smartwings Poland to pay the sum of 1,698.64 Polish zlotys (the equivalent of € 400). Smartwings Poland asserted that this request was made in the incorrect currency and because the request was not formulated in euros, but in Polish zlotys, the Polish judge should reject the claim.
The Polish judge asked the European Court of Justice for clarification.
What finding did the European Court of Justice make?
In its judgement, the Court said the primary objective of the Regulation was to give passengers a high level of protection. For this reason, the Court said entitlement to compensation should be explained in detail. The Court therefore found that the exclusion of payment of the refund in another currency could limit passengers’ right to compensation.
In addition, the Court said that Regulation 261/2004 applies to passengers without making a distinction in respect of their nationality or place of residence. Permitting payment of compensation in euros only could lead to an unjustified disparity in the treatment of passengers.
The Court therefore ruled that a passenger whose flight is cancelled or delayed considerably can claim compensation in the currency of the country in which they reside.
Court of Justice case law
Read the full judgement (case C-356/19) on the InfoCuria website.