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Proposed EU Revisions to Passenger Rights Spark Debate Over Compensation Rules



Airline passengers in Europe could soon see major changes to the way flight delays and cancellations are compensated. The European Union is currently debating proposed revisions to its landmark Air Passenger Rights Regulation (EC 261)—a set of rules that, for nearly two decades, has guaranteed travelers compensation when flights are significantly delayed, cancelled, or overbooked.

The draft reform, under discussion for several months, aims to update the regulation to reflect modern travel realities. But critics argue that the changes could weaken consumer protections, particularly by raising the eligibility threshold for compensation and reducing payouts in many common scenarios.

Under Regulation (EC) 261, passengers are entitled to compensation ranging from €250 to €600, depending on the flight distance, when delays exceed 3 hours or cancellations occur without sufficient notice. The law has long been praised for giving travelers clear rights and a straightforward process for claiming compensation when airlines fall short.

However, the proposed revision would raise the minimum delay threshold, in some cases requiring flights to be delayed by five hours or more before passengers qualify for financial compensation. The draft also introduces new criteria for determining “extraordinary circumstances,” which could exempt airlines from paying out if delays are caused by factors beyond their control, such as air traffic control strikes or extreme weather.

In addition, the changes would allow smaller payments for shorter delays and limit compensation for domestic and short-haul flights. The European Commission argues that these adjustments are necessary to ensure fairness between passengers and airlines and to reduce the growing administrative and legal costs associated with compensation claims.

Why the Push for Reform?

Supporters of the revision, including several national aviation authorities and airline groups, say the current rules place unreasonable financial pressure on carriers, particularly amid high costs and operational uncertainty.

They argue that the three-hour rule is overly rigid, leading to situations where airlines must pay compensation even when delays are minimal or beyond their control. Airlines also point to the rise of “claim farms” and third-party agencies that have turned passenger compensation into a business, adding legal and processing expenses that ultimately feed into higher ticket prices.

The proposed reforms, they say, would create a more balanced system, giving airlines greater flexibility while maintaining essential passenger protections.

Consumer Advocates Push Back

Consumer groups and passenger rights organizations, however, are sounding the alarm. They claim the new framework risks rolling back hard-won protections and shifting the balance too far in favor of airlines.

Under the proposed system, millions of travelers each year could lose access to compensation for common delays caused by operational issues, staffing shortages, or scheduling disruptions—all of which are within the airlines’ control.

European consumer watchdog BEUC has criticized the plan as a “step backward for passenger fairness,” arguing that it undermines trust in the travel system. Advocacy groups are urging the European Parliament and member states to reject the proposal in its current form, warning that it could erode accountability just as air travel rebounds across the continent.

Balancing Rights and Realities

The debate highlights the challenge of balancing passenger protection with industry sustainability. The aviation sector is still recovering from pandemic-era losses, navigating labor shortages, and facing mounting environmental and regulatory costs. Policymakers are keen to streamline compliance rules while ensuring travelers remain fairly treated.

For passengers, the stakes are high. The EU’s air passenger rights legislation has long been viewed as a global gold standard, inspiring similar frameworks in the UK and Canada. Any dilution could set a precedent affecting air travelers worldwide.

The proposed changes are still under review by EU lawmakers and member states, with negotiations expected to continue into 2026. Amendments are likely before any final vote, as both consumer and industry representatives lobby for adjustments.

In the meantime, travelers should continue to file claims under the current Regulation (EC 261), which remains fully in effect.

Whether the revised law will strike the right balance—or tip the scales—remains to be seen. For now, the discussion underscores a fundamental question: should the convenience of air travel come at the cost of passenger rights?

Evanne Evans, 13 Nov 2025