What airlines need to know about new EU claims management requirements

Felix Samstag and Dr. Janett Bachmann, mass litigation management experts at Pinsent Masons, were commenting after the EU Parliament and Council recently reached an agreement on the reform of EU air passenger rights. While compensation amounts, between €250 and €600, and the three-hour threshold remain unchanged, the reform introduces mandatory passenger notifications, standardised claim procedures and new deadlines for airlines to process compensation claims.

The reform of the Air Passenger Rights Regulation is consistent with the EU’s broader efforts to strengthen consumer rights.

Samstag said: “The most significant impact of the reform for airlines is not the level of compensation itself, but the new operational and compliance requirements surrounding passenger claims.”

Airlines will be required to proactively inform passengers of their rights, support standardised claims processes and respond to compensation requests within prescribed deadlines. The new rules are expected to increase passenger awareness and may lead to high claim volumes while facilitating scalable and automated claims handling. Passengers are expected to benefit from the new rules from around mid-2027.

As airlines will have a 12-month implementation period once the legislation enters into force, carriers should use this time to review and adapt their operational frameworks and claims management processes to ensure readiness for the new requirements.

Bachmann said: “Airlines should expect increased passenger awareness and potentially higher claims volumes. Carriers should assess whether their current claims management processes, IT systems and outsourcing arrangements can handle these requirements efficiently.

In particular, the new 96-hour notification obligation and the requirement to pay or reject claims within 30 days are likely to put additional pressure on existing claims handling operations.”

The update will impact airlines as well as passenger rights providers, law firms and businesses active in the mass claims sector.

While the reforms require improved processes, they also present opportunities, Samstag said.

“Standardised procedures and greater clarity around extraordinary circumstances should improve legal certainty and enable more consistent claims assessments. Airlines that prepare early and invest in efficient claims management processes will be better positioned to manage regulatory risks, control operational costs and respond effectively to growing claims volumes”, he said.