An expanded panel of the Supreme Court ruled on Tuesday that airlines may charge cancellation fees for each ticket separately from a person who has purchased several airline tickets, even though this is a single purchase transaction.
The ruling came in an appeal of a decision by a smaller Supreme Court tribunal and a lower court, which had rejected a consumer's claim that separate cancellation fees for tickets bought in one transaction was artificial and that the maximum cancellation fees should be derived from the value of the entire transaction. Joining the plaintiff was the Israeli Consumer Council. The court ruled that the separate cancellation fees were necessary to avoid reckless purchases and to allow the airlines to recoup administrative costs.