The EU has ruled in favour of passengers, airlines are unhappy
After years of wrangling and lobbying, European institutions have, at the last minute, reached an agreement on the reform of air passenger rights. With this decision, the EU has made a ruling and protected passenger rights, leaving airlines without the concessions they desired.
Discussions about amendments to the famous Regulation 261 have finally reached their conclusion. Although the aviation industry has been lobbying for years to thresholds for compensation payments are mitigated, Official Brussels has decided to maintain a firm line on consumer protection.
What does the new deal mean for the European aviation industry?
The long-standing legislative deadlock has finally come to an end. The new rules will have a direct impact on the operational business of airlines. Furthermore, the rules will also affect the work of travel agencies and TMC companies. The European Parliament's biggest victory in these negotiations is the maintenance of the current thresholds for financial compensation. Despite strong pressure to shift the delay limit, passengers will continue to retain the right to compensation if their flight is delayed by more than three hours.
For Agencies and tech platforms which deal with ticket distribution is a key change in the way prices are displayed. Systems will need to display the full ticket price including hand luggage from the very beginning of the search. This will eliminate so-called hidden costs and facilitate the comparison of offers on the market. On the other hand, airlines retain the freedom to create cheaper, bare-bones fares for those travelling exclusively with a personal item such as a small backpack. This item now becomes legally free on all flights.
End of hidden fees and faster claim collection
One of the biggest challenges for travellers, but also for sales intermediaries, has so far been the complicated and lengthy procedure for claiming rights after flight cancellations or delays. The new framework obliges airlines to proactively send clear electronic instructions on how to lodge a claim within four days of the trip's conclusion. Furthermore, the process itself must not be conditional on downloading applications or creating user accounts.
| Flight distance | Compensation amount | Note on redirection |
| Do 1,500 km | 250 € | Full amount in case of delay exceeding 3 hours |
| Between 1,500 and 3,500 km | 400 € | Full amount in case of delay exceeding 3 hours |
| Over 3,500 km | 600 € | Possible reduction of 50% if the alternative arrives within four hours. |
Airlines will have 30 days to pay out or provide an official, reasoned justification as to why compensation is not warranted. The time limit within which a passenger can submit a claim is now unified at nine months.
Operational changes and duty of care at airports
Besides financial rules, the regulation also brings a series of practical changes that affect day-to-day operations at terminals. Airlines will no longer be permitted to charge fees for correcting typing errors in passenger names. Furthermore, penalties for using printed versions of digital boarding passes will be abolished.
Additional protective measures are being introduced for families and vulnerable groups. Children under 14 will have to sit next to an accompanying adult with no extra charge for seat selection. The same rule applies to pregnant women and persons with reduced mobility. A significant shift has also occurred in the airport assistance segment. Namely, if a passenger misses a flight due to an error by the airport assistance service, the airline is obliged to provide them with care and alternative transport.
However, the extraordinary circumstances clause remains in effect. Carriers will not bear the burden of paying compensation if disruptions are caused by force majeure, such as extreme weather events, air traffic control strikes, or geopolitical conflicts. However, the duty of care, which includes food, refreshments, and accommodation for up to three nights, remains undisputed. The European Parliament is expected to formally approve this text at its July plenary session. This will finally close this long-standing chapter and herald a new era in the protection of passenger rights in the European skies.
The new political agreement within the European Union clearly shows that the direction of consumer rights protection will not change for the sake of protecting profit margins within aviation sector. Ahead of us lies a period in which airlines will have to radically improve their punctuality and operational resilience. This will be necessary if they wish to avoid serious financial blows. At the same time, sales channels will have to become even more adept at navigating the strict regulatory landscape.
