Finnair taken to court over delayed refunds for cancelled flights

Finnish flag carrier Finnair is facing legal action after repeatedly failing to reimburse passengers within the time limits set by European law, according to reports by Finnish public broadcaster Yle.

Finland’s Consumer Ombudsman has brought the airline before the Market Court, citing systematic delays in refunding passengers for cancelled flights. Under EU Regulation 261/2004, airlines are required to reimburse passengers within seven days of a flight cancellation.

However, authorities say Finnair has repeatedly failed to meet this deadline, with some passengers waiting several weeks or even months to receive their money back.

“Thousands of Finnair customers have had to wait far too long for refunds. These delays seriously violate consumer rights and must not be repeated,” said Rasmus Repo, a leading expert at the Consumer Ombudsman’s office, in a statement quoted by Yle.

The watchdog stressed that the seven-day rule applies in all cases, and that airlines cannot justify delays due to operational disruptions such as strikes.

In addition to delayed payments, Finnair has also been criticised for offering vouchers as a default compensation method instead of cash refunds.

Under EU rules, vouchers may only be provided with the passenger’s explicit consent—a condition authorities say has not always been respected.

The Consumer Ombudsman is now seeking a court order that would prohibit Finnair from continuing these practices, backed by a potential fine of €300,000.

The issue appears to be affecting customer sentiment. Juha Beurling-Pomoell, Secretary General of the Finnish Consumer Association, told Yle that many passengers have grown frustrated.

“Quite frankly, many consumers have been so disappointed that they have chosen another airline,” he said.

According to the association, Finnair generated the highest number of consumer complaints to Finland’s consumer advisory services last year, following hundreds of flight cancellations.

Passengers are also entitled to interest of up to 9.5% on late refunds under Finnish rules, further increasing the potential financial impact on the airline.

Finnair has reportedly pledged to improve its refund processes, particularly regarding the use of vouchers. However, consumer authorities say they will continue to monitor the situation closely.

The case highlights growing regulatory pressure on airlines across Europe to comply strictly with passenger rights legislation, particularly as operational disruptions continue to affect the industry.