European Union transport ministers have reached a long-awaited agreement to overhaul the bloc’s air passenger rights legislation, approving updated rules that increase the minimum flight delay time required before travellers are entitled to financial compensation. The political deal, struck after more than a decade of deadlock, marks a shift in the EU’s approach to passenger entitlements, aiming to bring greater clarity while balancing consumer protection with airline operational challenges.
Key changes to passenger compensation
Under the new regulation, passengers on short and medium haul flights (up to 3,500 kilometres, including all intra-EU routes) will only be entitled to compensation if their flight is delayed by four hours or more, with a payout of €300. For long-haul flights exceeding 3,500 kilometres, the threshold increases to six hours, though the compensation amount is reduced to €500.
This replaces the current rules under which passengers could claim compensation for delays starting at three hours. EU ministers argue the new delay thresholds better reflect the operational realities of air travel, while still ensuring fair treatment for consumers.
Dariusz Klimczak, Poland’s infrastructure minister, welcomed the agreement as a “historic milestone”, stating that the new framework grants passengers “over 30 new rights” from the moment of booking through to arrival, and in some cases, beyond.
New rights for travellers
The legislation also expands passenger rights in key areas including rerouting, assistance during disruptions, and access to information.
Airlines must now offer rerouting at the earliest opportunity, including on alternative carriers or transport modes. If they fail to do so within three hours, passengers can arrange their own travel and seek reimbursement of up to 400 percent of their original ticket price.
Minimum assistance standards have been defined more clearly. In cases of tarmac delays exceeding three hours, passengers must be disembarked and provided with food, accommodation, and communication options if needed.
Passengers must also be better informed at the time of booking and during travel disruptions. Claims must be submitted within six months of the incident, and airlines are required to pay compensation or respond substantively within 14 days.
For flight cancellations, passengers notified less than 14 days before departure will remain eligible for compensation, with airlines now obliged to provide pre-filled claim forms. Additionally, the revised regulation addresses the widely criticised ‘no-show’ policy, granting compensation rights to passengers who are denied boarding on return journeys due to missing the outbound leg.
Industry pushback
Despite the Council’s approval, airline groups have strongly criticised the agreement. Airlines for Europe (A4E) and the European Regions Airline Association (ERA) argue that the compromise fails to address the unique constraints of regional and short-haul operations.
A4E expressed disappointment that the delay threshold was increased only to four hours, rather than five as originally proposed by the Commission. The group believes a five-hour threshold could have significantly reduced the number of compensable delays and provided greater scheduling flexibility. A4E also said the final text diluted more effective provisions in the Commission’s draft.
ERA voiced concerns about the absence of exemptions for Public Service Obligation (PSO) flights, which serve remote regions. According to ERA director general Montserrat Barriga, the new rules risk undermining vital regional connectivity by imposing unsustainable compensation costs on low-margin routes.
Both associations are calling on the European Parliament to reconsider the proposal and adopt a more balanced approach that protects passengers without overburdening smaller airlines.
What happens next?
The Council’s proposal now moves to the European Parliament for a second reading. MEPs will have the chance to accept, amend or reject the text. Until then, the current EU261/2004 rules remain in effect, including the three-hour delay threshold and existing compensation levels.
First introduced in 2005, the EU’s air passenger rights regulation has long been considered among the world’s strongest. However, disputes over the scope of airline liability have repeatedly stalled attempts at reform, including a 2013 proposal from the European Commission that failed to gain consensus among member states.
The Council’s decision signals a renewed effort to modernise the regulation, aiming to resolve ambiguities and respond to changing expectations in the air travel industry. Yet as the legislation heads to Parliament, the challenge of balancing consumer protections with airline sustainability remains unresolved.
