Out-Law News 4 min. read
24 Jul 2025, 3:41 pm
The Council of the EU has reached a political agreement to alter the thresholds for compensation for delayed flights after more than 12 years of negotiations. The deal reforms the EU air passenger rights regulation – Regulation (EC) 261/2004 – which established common rules for airlines’ liability for breaches of air passenger rights, including flight delays and cancellations – in the biggest shake-up the aviation industry has seen for over a decade.
Although the 2004 regulation mandated a duty of care for airlines to provide passengers with compensation for flight disruptions, there has been criticism that passengers were unaware of their rights and that the rules were not always consistently applied by airlines, leading to some passengers losing out on compensation.
The proposals, which are still to receive formal approval from the European Parliament, will see passengers have to wait longer to claim for compensation, but some passengers will be entitled to claim more compensation for delays. The proposals simplify the categories of compensation from three under the current rules, to two types of claims under the proposed revisions.
Currently short-haul passengers can claim €250 to €300 for delays of more than two hours, provided the journey is less than 1,500km and inside the EU; or €400 for delays of more than three hours for flights inside the EU more then 1,500km. Under the new rules, these two categories will be combined into one, with passengers travelling either within the EU or under 3,500km able to claim delay compensation from €300 if they have been delayed by at least four hours.
Long-haul passengers currently travelling more than 3,500km can claim from €600 for delays of more than four hours. Under the new rules, they will be required to travel more than 3,500km and wait at least six hours, but will only be entitled to claim from €500 in compensation.
Going forward passengers who are informed that their flight is cancelled less than 14 days before its departure will also be entitled to compensation. Airlines will have to provide passengers with pre-filled forms to claim compensation
The Council’s agreement also provides a non-exhaustive list which outlines circumstances which are and are not to be considered extraordinary for the purposes of allowing airlines not to compensate passengers. Airlines will also not be entitled to refuse compensation due to “extraordinary circumstances” unless they can show that they took all reasonable steps to prevent disruptions.
The new rules will establish several important passenger rights, including the right to be rerouted. Airlines will be required to offer passengers rerouting “at the earliest opportunity”, including the possibility to be rerouted through flights operated by other carriers or alternative modes of transport, where suitable. If an airline fails to provide an appropriate rerouting within three hours of a disruption, passengers may be entitled to organise their own alternative travel and claim reimbursement of up to four times the original ticket cost.
The proposals also offer greater clarity over what assistance passengers can reasonably expect during delays. The right to refreshments, food and accommodation has been clarified. If an airline fails to provide this, then passengers are permitted to make their own arrangements and be reimbursed accordingly.
There is also a specific provision concerning ‘tarmac delays’ where delays occur after passengers have boarded a plane but it has not taken off. Passengers will be entitled to minimum assistance and should be disembarked from the aircraft after three hours of delay.
The Council said that passengers should also be better informed about their rights when experiencing delays. There will be stricter information obligations for airlines to supply to passengers to ensure they are better informed about their rights, alongside strict deadlines for responses to passenger claims. Under the new rules, passengers will have up to six months from the disruption to submit a request or a complaint to the airline. Meanwhile airlines will have 14 days from the submission of the request being introduced to pay compensation, or to provide a clear and substantiated reply to a passenger.
Commenting on the development, Brian Grierson, a commercial and aviation litigation expert at Pinsent Masons, said the reforms have something in them for both airlines and passengers. “This is a significant change to the respective rights of passengers and airlines when they are managing delays,” he said. “While passengers and consumer rights groups may be unhappy with the proposed lengthening of the period of delay before compensation is due, the proposed reforms hand passengers some new and significant new rights when experiencing delays and disruption to their journeys.”
In particular, Grierson said the proposed right to be rerouted would be “a powerful new right for passengers facing disruption” in future. He added: “It will be interesting to see if this prompts airlines to work more closely together to ensure the swift re-booking of disrupted passengers with alternative airlines to avoid the risk of paying compensation of up to four times the price of the original fare.
If approved, the revised regulation will apply to flights to and from the EU. The UK has its own rules on air passenger rights, which were translated into UK law after Brexit. The EU proposals will not directly affect the UK’s position unless the UK government decides to make further changes to its own domestic regulation. However, Grierson said the changes will affect all flights which either start or end in the EU and all flights operated by an EU carrier, meaning that airlines that travel between the UK and the EU will need to be aware of the changes.
Given the protracted negotiations to get to this point, Alex Bertram of Pinsent Masons said EU members’ proposals will be significant in providing much-needed clarity on air passenger rights. “Airlines and passengers will welcome the steps taken by the Council to clarify what does and does not constitute ‘extraordinary circumstances’ for the purpose of denying eligibility for compensation,” he said, “but the approach in determining and adjudicating whether ‘all necessary steps to prevent disruption’ have been taken remains to be seen.”
Out-Law News
24 Feb 2023