Airline: The EU pulls out all the stops on compensation for delays

The European Transport Ministers have reached an agreement on compensation and refunds in the event of flight delays and cancellations. A compromise between the demands of the airlines and legitimate passenger protection.
European Union future offsetting rules
New rules for EU travellers faced with flight delays and cancellations soon to come into force? (Photo: departure area at Düsseldorf airport - Luc Citrinot)

Under discussion for 12 yearsthe European Union's transport ministers have finally reached agreement on the reform of EU legislation261which governs the rights of air passengers in the event of delays or cancellations. Unsurprisingly, the EU has tried to have it both ways. Of course, no one will be happy. The airlines have already stated that the compromise, which includes changes to the delay threshold for compensationdid not go far enough to ensure the stability of air transport. They are particularly bitter about the fact that transport ministers refused to invoke "extraordinary circumstances" to avoid compensating passengers.

Passengers will be subject to stricter refund rules, but will also benefit from new rights.. In particular, the compensation period has been increased from 3 to a minimum of 4 hours, while the airlines have argued for 5 hours. " The new framework aims to establish simpler and clearer rules for air passengerswhile striking a better balance between a high level of passenger protection and the preservation of connectivity and fair competition for the aviation sector within the EU internal market. "said the Council of the EU in a press release.

The agreement focuses on four key rights: the right to be re-routed; the right to assistance; the right to compensation for cancellations and delays; and the right to information..

Right to re-routing

Airlines must offer passengers re-routing as soon as possible, including the possibility of being re-routed via flights operated by other carriers or alternative modes of transport where appropriate.

What's more, if an airline fails to provide appropriate re-routing within three hours following a disruption, passengers can arrange their own re-routing and request a refund of up to 400 % of the original cost of the ticket.

Right to assistance

The right to assistance (refreshments, food, accommodation) is now clearly defined. If an airline does not provide this, passengers can make their own arrangements and subsequently be reimbursed. In the event of tarmac delays, passengers will be entitled to minimal assistance and must be disembarked from the aircraft after a 3-hour wait.

Right to compensation in the event of cancellations and delays

Taking particular account of the European Commission's impact assessment, the Council is proposing a update of compensation thresholds in the event of delays.

Airlines are not allowed to refuse compensation due to "extraordinary circumstances".. Unless they can prove that they have taken all reasonable steps to prevent disruption.

Compensation varies according to distance:

Journeys of less than 3 500 km and intra-EU journeys compensation applies for delays of more than 4 hours (€300).
Journeys of over 3,500 km compensation applies for delays of more than 6 hours (€500).

The Council's position also introduces a number of changes to the refund rules for which passengers can claim compensation. Passengers informed of the cancellation of their flight less than 14 days before departure are entitled to compensation.. In the event of cancellation, the airline must provide passengers with pre-filled forms so that they can claim compensation.

The Council also wants to discourage the "no-show" policy currently widely used. Passengers who are denied boarding on a return flight because they did not take the outbound flight will now be entitled to compensation.

Longer delays and less money for passengers compensated under future European legislation (Photo: LC)

Right to information

EU air passengers will have to be better informed of their rights. Airlines will have to comply with stricter information requirementsThis includes the booking process and the handling of complaints and requests.

New provisions introduce strict deadlines for airlines to respond to passenger complaints. Passengers will have up to 6 months after experiencing inconvenience to submit a request or complaint to the airline. 14 days from submission of the application will be introduced to ensure that airlines pay compensation or provide a clear and justified response to a passenger.

Comparison of current and future compensation arrangements for flight delays or cancellations
 Current regulationsFuture provision
Journey of less than 3,500 km250 (up to 1,500 km and 3 hours' delay)

400 (up to 3,500 km and 3 hours' delay)

300 (from 4 hours late)
A journey of over 3,500 km600 (from 3 hours late)500 (from 6 hours late)

(Source: https://europa.eu/youreurope/citizens/travel/passenger-rights/air/index_en.htm#compensation-cancellation ; https://www.consilium.europa.eu/en/press/press-releases/2025/06/05/council-sets-position-on-clearer-and-improved-rules-for-air-passengers/)

Frustration of BEUC and A4E

The airlines, however, expressed their disappointment. " Europe has been waiting for transparent and enforceable passenger rights for 12 years and the Member States have failed at the final stage to implement them.said Ourania Georgoutsakou, Managing Director of Airlines For Europe (A4E). Rather than providing delay thresholds of 5 and 9 hours, which would have saved up to 70 % of recoverable cancelled flights, the Member States have watered down the European Commission's initial proposal and introduced even more complexity. ".

Agustín Reyna, Director General of the European Consumers' Organisation (BEUC), for its part, believes that " Although the agreement has improved certain rights, giving consumers better access to information in the event of disruption, care and assistance, it represents a substantial rollback of other key rights. Take compensation, for example. The new eligibility thresholds will deprive the majority of passengers of their right to compensationMost delays are between 2 and 4 hours. " .

He continued: " Consumer organisations are calling on the Members of the European Parliament to defend their position and maintain essential rights. The review of the Air Passenger Rights Regulation should be an opportunity to show consumers what the EU can do for them rather than taking away their consolidated rights. Passenger rights must be maintained, clarified and better enforced, not diminished" .

The text must now be examined by the European Parliament at second reading. The Parliament will then have the opportunity to approve, amend or reject the Council's position. It will then apply to 27 countries of the European Union, as well as Iceland, Norway, Switzerland, Gibraltar and the French overseas departments and territories..

What about cabin baggage?

In the controversy over the right to take a free hand luggage on boardThe transport ministers have agreed with the airlines. Free baggage allowance for larger items will be left to the airlines' discretion. This news should please low-cost carriers.

The Council of Transport Ministers states the following: In order to ensure that passengers are fully aware of the baggage allowances included in their ticket, for both unchecked and checked baggage, airlines must clearly indicate these excesses when booking and at the airport.

In order to ensure sufficient personal comfort for passengers during their journey, and as recognised by the Court of Justice of the European Union in case C-487/12 (Vueling), passengers should be allowed to take personal effects free of charge as a necessary aspect of their cabin travelprovided that the items comply with the applicable safety and security requirements. And that they are reasonable in terms of weight and dimensions.

Personal items items considered essential for the duration of the trip include passports and other travel documents, essential medicines, personal appliances and reading material as well as food and drink Passengers must be informed at the time of booking, in a clear and accessible format, of the maximum dimensions and weight of baggage that they can take with them in the cabin.

Without prejudice to the principle of price freedom, air carriers must define a reasonable policy for the size of hand baggage.. In view of the diversity of air carriers' policies, it would be appropriate for the revision of Regulation (EC) No 1008/2008 to include a reference to the "European Union".he feasibility of uniform minimum rules for hand luggage should be assessedFor Agustín Reyna, Director General of BEUC, " Such practices are contrary to EU rules and the case law of the EU Supreme Court. The latter stipulates that hand luggage is an essential aspect of passenger transport. On the contrary, the text adopted by the Council legitimises the charging of reasonably sized hand luggage." .