IATA: New EU passenger rights agreement is “missed opportunity”
The International Air Transport Association (IATA) has criticised the European Union’s latest agreement on air passenger rights, arguing that lawmakers missed an opportunity to fix what the airline industry considers fundamental flaws in EU261.
European Parliament and Council approved revised passenger rights rules aimed at strengthening consumer protections and clarifying compensation procedures.
EU Council and Parliament strike an agreement on stronger rights
Under the new agreement, passengers will still be eligible for compensation for flight delays of three hours or longer, ranging from €250 to €600 based on flight distance. The EU has debated compensation for more than a decade, with previous proposals calling for higher delay thresholds and lower compensation amounts.
The EU Council and the European Parliament said the changes aim to provide clearer rules while balancing consumer protection with the competitiveness of European airlines.
“I’m proud that, after 13 years of negotiations, we reached a landmark agreement to strengthen EU air passenger rights. This modernised framework will deliver certainty, fairness and stronger protection for millions of European air passengers. The agreement strikes a fair balance for our airlines, helping preserve connectivity that is vital to the EU’s internal market and its citizens,” said Alexis Vafeades, Minister of Transport, Communications and Works of the Republic of Cyprus, in the EU Council’s announcement.
The new EU air passenger rights agreement includes the following provisions:
1. Compensation rules remain largely unchanged
Passengers will still be entitled to compensation after a three-hour delay, with amounts remaining:
- €250 for flights under 1,500 km
- €400 for flights between 1,500 and 3,500 km
- €600 for flights over 3,500 km
Earlier proposals to raise the delay threshold and reduce payouts were rejected.
2. Airlines must proactively inform passengers
Carriers will have to tell passengers about:
- Their rights;
- Eligibility for compensation; and
- How to file claims.
Passengers must receive this information within 96 hours of a disruption. Claims procedures are also simplified.
3. Stronger rerouting rights
If an airline cannot provide a suitable alternative flight, passengers will gain stronger rights to arrange their own rerouting and seek reimbursement.
The agreement also clarifies rights in cases of missed connections.
4. Families will sit together free of charge
Children will be entitled to sit next to accompanying adults without paying additional seat-selection fees.
5. Better protections for passengers with disabilities
The agreement strengthens rights for passengers with reduced mobility and disabilities, providing clearer obligations for airlines and airports.
6. More transparency on baggage fees
Airlines will have to make baggage charges clearer during booking.
Large cabin bags may still incur fees, but consumers will have better visibility of those charges. Small personal items remain free.
7. No-show clauses are banned
Airlines will no longer be allowed to cancel a return flight simply because a passenger missed the outbound leg.
This practice, known as a “no-show” policy, has been controversial for years.
8. Boarding passes cannot require an app
Passengers cannot be forced to download an airline’s mobile app to obtain a boarding pass.
Airlines must continue to provide alternative formats.
9. Extraordinary circumstances are clarified
The legislation introduces a clearer list of what constitutes “extraordinary circumstances”—such as severe weather or security threats—thereby providing more legal certainty for passengers and airlines and aiming to reduce disputes.
10. New rules on tarmac delays
There will be stronger protections for passengers when they are kept onboard for extended periods of time, including clearer rights to assistance and disembarkation.
IATA says reform failed to address core problems
IATA said the revised legislation does little to improve the passenger experience and does nothing to enhance the competitiveness of Europe’s airlines.
“The revisions stopped short of the meaningful reform needed to address the regulation’s deep flaws,” the association said, describing the outcome as a “missed opportunity.”
According to IATA, the EU261’s compensation fails to address the root cause of disruptions, stating, “A major share of delays is related to deficiencies in Europe’s air traffic management system.”
Airlines had pushed for longer time thresholds that would accommodate operational challenges in the new rules, but were unsuccessful.
Walsh: Focus should be on keeping flights moving
Willie Walsh said Europe needs regulations that encourage airlines and airports to work together to minimise delays.
“The result will not reduce delays, but considering the whole package of changes, it will create operational challenges and add costs, which will ultimately be borne by passengers,” said Willie Walsh, IATA’s Director General. “So, it’s a reform in name only that does nothing to help disrupted passengers. Those responsible for this political trade-off must be held accountable with transparent data to monitor its costs and impacts.”
He added that the revised rules do not address broader challenges affecting European aviation competitiveness.
“Where do we go from here? First, we must work with the Council and Parliament to ensure that the enforcement package does not make an already bad situation worse with additional regulatory burdens that the sector can ill afford,” said Walsh. “The aim should be practical, effective, and consistent implementation. And second, Europe’s imminent Aviation Strategy must address air traffic management deficiencies, which are the root cause of many delays.”
Industry concerns over rising costs
The airline industry has long argued that EU261 creates high costs that are ultimately passed on to passengers as higher fares. According to IATA, the current passenger rights law costs airlines about €8 billion a year.
IATA has previously argued that compensation paid to a relatively small number of disrupted passengers is funded by the ticket prices paid by all travellers.
Consumer organisations, however, have defended the existing framework and opposed attempts to weaken compensation rights. European lawmakers ultimately opted to preserve the current three-hour threshold and compensation levels.
A decade-long debate comes to an end
The agreement effectively concludes 13 years of negotiations over reforms to EU261, one of the world’s most comprehensive passenger protection regimes.
While Brussels has presented the legislation as a landmark strengthening of passenger rights, the airline industry believes the final package falls short of delivering reforms that would improve operational performance and help European carriers remain competitive globally.
Featured Image: Alina Rosanova | stock.adobe.com
