European Union relaxes flight delay compensation rules

Airlines breathe easy as delay thresholds hiked
2025-06-10
/
/ New Delhi
European Union relaxes flight delay compensation rules

The revision aims to align with operational realities while maintaining basic consumer protections.

European Union transport ministers have reached an agreement to revise the bloc’s air passenger rights legislation, marking the first update to the EU261/2004 rules in over a decade. The revision introduces new thresholds for flight delays before passengers become eligible for financial compensation, partly meeting demands by airlines.
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For the first time in a decade, EU transport ministers have agreed to amend the longstanding EU261/2004 regulation, setting higher delay thresholds that determine when air travellers are entitled to financial compensation.

In a press statement, the report states that the agreement includes a minimum delay of four hours for passengers travelling on short and medium-haul flights. For flights up to 3,500 kilometres, passengers will be eligible for compensation of EUR 300. For long-haul flights exceeding 3,500 kilometres, the delay threshold will be six hours, with compensation set at EUR 500.

It adds that this replaces the current rule, under which passengers can claim compensation for delays of three hours or more. According to EU ministers, the revision aims to align with operational realities while maintaining basic consumer protections.

As per the statement, the revised regulation also includes changes related to rerouting, minimum assistance, access to information, and boarding policies.

The statement mentions that airlines must now provide rerouting at the earliest opportunity, including via other carriers or transport modes. If not offered within three hours, passengers may arrange their own alternative travel and claim reimbursement up to 400 pc of their ticket cost.

The report says that minimum assistance provisions now include clearer standards. If delays exceed three hours while passengers remain onboard, airlines must disembark them and provide food, accommodation, and communication support as needed.

As per the report, information rights have also been clearly defined. Passengers must be better informed during booking and in the event of disruptions. Airlines must respond to claims or pay compensation within 14 days, and passengers will have up to six months to file claims.

According to the report, the existing rules for cancellations remain unchanged. However, passengers who are informed of cancellations less than 14 days before departure will continue to be eligible for compensation.

The report also mentions that airlines will now be required to provide pre-filled claim forms. The updated regulation further addresses boarding issues related to no-show clauses, passengers denied boarding on a return leg due to missing the outbound segment will now be entitled to compensation.

The report says that airline associations have expressed opposition to the agreement. Airlines for Europe (A4E) and the European Regions Airline Association (ERA) have criticised the regulation for not adequately adjusting to short-haul operations and for failing to exempt Public Service Obligation (PSO) routes.

According to A4E, a five-hour delay threshold would have better supported airline scheduling needs and reduced the volume of compensation cases. Additionally, it argues that the final text weakens more effective provisions proposed in the earlier European Commission draft.

The report states that ERA Director General Montserrat Barriga has raised concerns about the regulation’s impact on regional connectivity. She emphasised that the lack of Public Service Obligations (PSO) exemptions imposes compensation burdens that could threaten low-margin routes. Both associations have urged the European Parliament to reconsider the proposal and introduce amendments that reduce operational strain on smaller carriers.

According to the report, the proposal will now move to the European Parliament for a second reading, where MEPs may accept, amend or reject the draft. Until a final decision is reached, the current EU261/2004 regulation will remain in force.

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