EU agrees on revamped air passenger rights; airlines say reform falls short on core delay rules and competitiveness

EU institutions have reached a long-awaited political agreement on a revision of EU air passenger rights and airline liability rules, aimed at strengthening and simplifying protections while updating enforcement mechanisms. The deal was concluded between the Council of the European Union and the European Parliament.

The reform reinforces existing rights for passengers facing denied boarding, cancellations and delays, while aiming to improve clarity, assistance obligations, and access to compensation. It also seeks to reduce friction in claims handling and improve transparency throughout the travel disruption process.

Key elements of the agreement include:

• Compensation thresholds and levels: passengers become eligible for compensation from 3 hours’ delay or cancellations less than 14 days before departure, with payouts broadly maintained at €250 (?1500 km), €400 (intra-EU/1500–3500 km), and €600 (>3500 km).
• Faster claims handling: airlines must acknowledge claims immediately and respond within 30 days, and inform passengers electronically within 96 hours after arrival in eligible delay cases.
• Stronger assistance rights: mandatory provision of meals, refreshments, communication access, and hotel accommodation if necessary, with reimbursement if passengers must arrange their own care.
• Rerouting obligations: airlines must offer alternative travel within three hours, potentially via other carriers or transport modes, at no extra cost. If they fail, passengers may rebook themselves and claim reimbursement up to 400% of the ticket price.
• Greater transparency: clearer information on rights, disruption causes, and inclusion of hand baggage in upfront fare display to improve price comparability.
• Special protections: reinforced rights for passengers with reduced mobility, children, pregnant travellers, and unaccompanied minors, including seating guarantees and compensation in certain cases.
• Clarification of “extraordinary circumstances”: a more structured definition limits when airlines can avoid compensation and reinforces the burden of proof on carriers.
• Next review clause: the European Commission will assess within three years whether the rules should be extended further, including to third-country operators.

According to ministers involved in the deal, the reform is intended to modernise a framework first introduced in 2004 and clarify long-standing legal uncertainties, while preserving connectivity across the EU aviation market.

However, the agreement has drawn strong criticism from the airline industry. The International Air Transport Association said the outcome “misses the mark,” arguing that it fails to address the structural drivers of delay and does not meaningfully reform the compensation regime.

IATA’s Director General Willie Walsh argued that more ambitious changes—particularly higher delay thresholds before compensation applies—were removed during negotiations, limiting airlines’ ability to prioritise rebooking solutions for passengers. The association estimates EU261-related costs at around €8 billion annually and contends that much of Europe’s delay performance is driven by air traffic management inefficiencies, as reflected in data from Eurocontrol.

While acknowledging minor improvements such as a clearer list of extraordinary circumstances and increased contingency planning obligations, IATA maintains that the reform adds operational complexity and cost without materially improving punctuality or passenger outcomes.