Pegasus Tours Faces 2.5 Million Shekel Lawsuit Over Refund Denials

A class-action lawsuit exceeding 2.5 million shekels has been filed at the Tel Aviv District Court against Pegasus Tours, accusing the company of refusing full monetary refunds to customers following the forced cancellation of trips and flights. The legal action was initiated by 81-year-old Chava Goldenberg from Ness Ziona, represented by attorneys Ofer Shapir and Netanel Otmi, according to reports by local media.

According to the court filing, Goldenberg had purchased an organized tour to Japan scheduled for March 2026 at a cost of 7,380 dollars. Four days prior to departure, Pegasus announced the cancellation of the trip due to security conditions and the repercussions of Operation Roaring Lion. While the bulk of the amount, totaling 7,130 dollars, was canceled through her credit card company, out of a 250-dollar deposit paid directly to the company, only 130 dollars were refunded.

The remaining balance of 120 dollars was converted by Pegasus into a personal future credit note valid until the end of 2026. Last October, Goldenberg contacted the company, explaining that due to her age and deteriorating health, she is unable to travel again, but her demand for a cash refund was denied. The petition claims that this constitutes a forced and worthless credit, amounting to consumer harassment, and alleges that the company artificially splits a package sold at an all-inclusive price in violation of its regulations and Supreme Court rulings. The lawsuit seeks to represent all company customers over the past seven years whose funds were deducted or converted into credits following cancellations not initiated by them.

In response, Pegasus stated: "This involves an 81-year-old traveler, a long-time customer of the company, who unfortunately could not take the trip due to the war and the suspension of flights. Despite the exceptional circumstances, nearly 98 percent of the trip's cost was refunded or canceled. The 120 dollars in dispute do not represent a fee or profit for Pegasus, but rather expenses paid in advance for ground services to suppliers abroad that were not refunded to the company. Pegasus acted to minimize the damage as much as possible, and we leave it to readers to judge whether it is appropriate to present a company that refunded almost the entire payment as one acting to misappropriate funds."