Under what circumstances can an air carrier charge passengers a cancellation fee?

The ability of an air carrier to charge passengers a cancellation fee is typically outlined in the airline's contract of carriage, which serves as the legal agreement between the airline and the passenger. This document specifies the terms and conditions under which fares are offered, including cancellation and refund policies. Airlines include these provisions to ensure transparency and set clear expectations for passengers regarding any fees that may apply in the event of cancellations.

It's important to note that while airlines may have their own general rules on cancellation fees, these must align with broader regulations and consumer protection laws. This ensures that passengers are treated fairly and that the airlines' practices are in compliance with legislated standards.

Other options may suggest circumstances that do not universally apply to all airlines or do not provide the clarity that the contract of carriage offers. For example, government requests or peak travel seasons may influence policies or fees in practice, but the definitive source for understanding cancellation fees remains the contract of carriage itself.