A refund for the airfare ... but not the extras.

A member wrote to us after cancelling his (return) Jetstar flights between Christchurch and Brisbane because of his wife's poor health. He had travel insurance - so he received a refund for most of his costs from his insurer Southern Cross … but not for the extras (taxes and third-party charges) in the airfare.

Southern Cross believes it’s standard practice for airlines to refund these extras. So does Michael Lueck, Associate Professor of Tourism Studies at the Auckland University of Technology.

He said regardless of the reason for cancelling and the type of fare, you’re always entitled to get back your taxes.

So even if you've bought non-refundable fares, you can claim a refund on the taxes and charges the airline pays on your behalf to third parties such as governments and airports (which it no longer has to pay because you couldn't travel). But you can’t claim for the airline’s fuel charges.

However, you don't always get all your taxes back. Any refund by Jetstar for flights between here and Australia will be less a $50 administration fee for each passenger per booking. This includes customers who’ve bought a top-of-the-line Jetstar Starter Max or Business Max fares.

Pacific Blue Saver or Flexi fares also charge a cancellation fee ($80 and $100 for each passenger per booking respectively) – although its Premium Economy and Business fares don’t incur cancellation fees.

So where an "administration" fee is charged for a cancellation, the refund of taxes and third-party charges needs to be higher than the fee to be processed.

Air New Zealand and Qantas will refund the taxes and third-party charges if you cancel a non-refundable trans-Tasman flight. They only have cancellation fees on long-haul flights.

It pays to book, change and cancel flights online if possible, because using the contact centre or airline retail outlets usually incurs a service fee.

We say

• That some airlines charge an "administration" fee to process a refund of taxes and third-party charges leaves open whether this fee should be recoverable from your travel insurer.
• Southern Cross tells us it will pay the airline "administration" fee if you make a claim because you had to cancel a flight.
   

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