Israeli Consumer Law: Passenger Flight Cancellations and Refunds Explained

Israeli consumer protection law mandates that flight tickets, hotel stays, or vacation packages purchased online or by phone can be canceled within 14 days of purchase, provided at least seven business days remain before the flight. Cancellation fees are capped at 5% of the price or 100 shekels per ticket, whichever is lower. This right applies even if the ticket states 'non-refundable' or lists a 50% cancellation fee.

For in-person purchases at a travel agency, the cancellation window is also 14 days, but requires 14 business days before the service date. Special provisions grant a four-month cancellation period for seniors over 65, individuals with disabilities, and new immigrants whose transactions were conducted via phone or chat. Cancellation notices should be sent through the same channel as the original purchase, with an email confirmation serving as evidence.

The refund, minus cancellation fees, must be processed by the vendor within 14 days of receiving the cancellation notice. If a ticket is purchased less than 12 days before the flight, the 7-day business day buffer before departure limits the effective cancellation window. The applicability of Israeli law depends on where the transaction was finalized; foreign websites without an Israeli representative may fall outside its scope.

A recent court case involved a $9,140 trip to Vietnam and Cambodia canceled due to illness. The travel company, Pegasus, sought to charge half the amount, but a judge ruled it a remote sale canceled on time, limiting the cancellation fee to 100 shekels. Travel agencies are obligated under aviation services law to assist customers with airline cancellations and may be liable if they refuse to process a request.

When the airline cancels a flight, passengers are entitled to a full refund, including taxes, within 21 days of written request (15 business days if booked through an agent). Additional compensation, ranging from 1,530 to 3,670 shekels depending on flight distance, is also mandated. For cancellations initiated by the passenger after the 14-day window or when fewer than seven business days remain, the terms of the specific ticket apply, with cheaper fares potentially incurring up to 100% of the price.