Are refund fees for cancelled Royal Brunei flights legal

Dogbolter60

Our flights to Bali in August have been understandably cancelled by the airline due to Covid19 but they have given us amongst the 4 options of a refund to my credit card..... less a “Refund fee” of BND50 (~£29) per ticket which works out at approx £120.
Is this legal to charge this especially as the airline cancelled and not me?
Although my travel insurance policy is not worth the paper it’s written on (as I took it out before the pandemic and they won’t cover for cancellation in this situation), I gather that I can claim “ Chargeback “ from my credit card!?
Thanks in advance for your assistance 👍

Westin

If you booked direct with the airline, rather than via an online ticket seller, if the airline cancels the flight then you should typically receive a full refund.    I would check the fare type/terms & conditions to see if there is mention of a Refund Fee.