The International Air Transport Association has strongly opposed the European Parliament’s proposed reforms to EU261 passenger rights regulation, warning they will increase costs for both airlines and passengers without solving fundamental issues. IATA estimates the reforms could more than double compliance costs from €8 billion to over €15 billion annually.
What Are the Proposed EU261 Changes?
The European Parliament wants to expand passenger protections beyond the current framework established in 2004. The reforms include increased delay thresholds from three hours to four hours for short haul flights and nine hours for long haul routes before compensation applies. The European Council initially agreed to more balanced changes in June 2025, but Parliament’s version adds significantly more protections and complications.
Do you know the per passenger cost would rise from €5 to €10 per segment under these proposals? This represents a 100% increase that airlines will inevitably pass to consumers through higher ticket prices.
Why Does IATA Oppose These Reforms?
IATA argues the reforms entrench and worsen existing flaws rather than fixing them. The association’s Senior Vice President Thomas Reynaert calls the proposals a “misguided wish list” that adds protections, complications, and costs Europe cannot afford. The original EU261 intention was ensuring passengers received care during delays and compensation for denied boarding, but legal rulings expanded it far beyond the initial scope.
Cost Impact Comparison
How Will This Affect Your Travel Plans
Airlines facing doubled regulatory costs will reduce route connectivity and increase fares to maintain profitability. The reforms threaten Europe’s aviation competitiveness at a time when the industry already struggles with narrow margins. Most passengers prioritize arriving late over not arriving at all, yet the reforms discourage airlines from operating delayed flights by maintaining strict compensation rules.
Key Industry Concerns About EU261 Reform
- Compensation thresholds remain too low despite operational realities
- Extraordinary circumstances definitions lack clarity causing legal disputes
- Administrative complexity costs airlines €1.5 billion annually
- Proposals ignore what consumers actually want from air travel
What Airlines Want Instead
The aviation industry advocates for three critical reforms that balance passenger protection with operational feasibility. First, increased delay thresholds would enable airlines to recover disrupted flights rather than cancelling them entirely. Second, a clear non-exhaustive list of extraordinary circumstances would eliminate constant legal battles over events outside airline control. Third, maintaining pricing freedoms protects consumer choice and travel affordability.
Frequently Asked Questions
When will EU261 reforms take effect? The European Parliament proposals are still under negotiation with no confirmed implementation date.
What is the current compensation structure? Passengers receive €250 to €600 based on flight distance when delays exceed three hours.
Why are reform costs so high? Expanding protections increases both compensation payouts and administrative burden for processing claims.