The European Union is considering watering down passenger flight delay compensation rules, which could leave travelers out of pocket. The current EU261 regulations have been in place since 2005, providing compensation and support for passengers in the event of delays or cancellations. A new proposal led by Poland could see the threshold for compensation raised to at least five hours, which experts believe would be detrimental to consumers, as airlines would face no penalty for lengthy delays.
EU261 establishes the rights of air passengers in cases of flight disruptions. It applies to flights departing from EU airports and flights arriving at EU airports if operated by an EU airline. Passengers are entitled to compensation for delays of more than three hours, cancellations within 14 days of departure, and denied boarding due to overbooking. The regulation does not cover flights on non-EU airlines heading to Europe or non-European flights with layovers in Europe. Compensation amounts depend on the length of delay and flight distance, with a maximum of €600.
Changes to flight compensation rules being discussed include raising the delay threshold to five hours for short-haul flights, nine hours for medium-haul flights, and up to 12 hours for long-haul flights. Critics argue that this revision would weaken passenger rights as most delays fall between two and four hours, meaning that nearly 85% of affected passengers would no longer be entitled to compensation. Airlines4Europe claims that increasing the threshold would incentivize airlines to resolve delays before reaching the compensation threshold.
Despite inflation eroding the value of payouts, EU261 compensation rates have remained unchanged for two decades. Some airlines, particularly low-cost carriers, believe that the amounts are disproportionate, especially for flights where passengers pay minimal fares. The International Air Transport Association has long called for a review of the rules, stating that they cost airlines billions of euros annually without driving improvements in aviation performance.
Discussions on potential changes to flight compensation rules will continue in the coming months, with outcomes needing approval from the European Parliament and Council. When the UK left the EU, it adopted EU261 into UK law, ensuring that passengers in the UK also enjoy the same protections as their European counterparts. It remains to be seen if the UK will choose to align its laws with any changes made in the EU. For now, the three-hour rule for compensation remains in place, but any alterations made in Brussels could have widespread effects on passenger rights in Europe.
