Since its adoption in 2004, EU Regulation 261/2004 has been the cornerstone of air passenger rights in Europe, guaranteeing compensation for flight delays, cancellations, and denied boarding.
However, after years of legal disputes, industry lobbying, and evolving market conditions, the European Union is now poised to overhaul these rules.
The proposed reforms, agreed by the EU Council of Ministers this summer, mark the most significant change to passenger rights in two decades.
But while the EU claims the goal is to “clarify and improve” the rules, critics warn that the reforms could weaken rights for millions of passengers and shift the balance in favor of airlines.
The push for reform comes against a backdrop of rising air travel demand, persistent delays, and a patchwork of national interpretations of the regulation.
In an earlier review of the issue, the EU Commission also stated that: “On the other hand, the Study also showed that the absolute and relative costs incurred by air carriers through the implementation of Regulation 261/2004 have grown significantly since 2011 with a risk to result in a restriction in the number of routes operated or a reduction in connectivity offered to passengers in the long term.”
The EU has been trying to reform the law for over a decade but has always come up against opposition from Member States.
However, a decision has now been reached, which is subject to the approval of the European Parliament, expected sometime this year.
The main proposed changes are:
Delay Thresholds
Until now, passengers could claim financial compensation of up to €600 for a delay of more than 3 hours on arrival.
Thus, the current rules state:
Up to 1,500km - €250
Up to 3,500km - €400
More than 3,500km - €600
The EU has decided to change these thresholds:
For intra-European flights and those of less than 3,500km, compensation of €300 will only be paid from 4 hours of delay on arrival, and no longer 3.
For flights longer than 3,500km the compensation reduces to €500 from €600 for 6 hours delay, instead of 5.
The EU justifies this reform by the need to harmonise rules and reduce the financial burden on airlines, while maintaining a minimum level of protection for passengers. The cost of the claims to the airlines is around €8b a year, according to the EU.
However, critics point out that under these rules most existing claims will no longer be possible: "Most of the delays are between two and four hours. With this new text, three-quarters of passengers who are victims of delays will no longer be able to claim any compensation," deplores a coalition of associations.
‘Extraordinary Circumstances’
Airlines have long argued that the current list of ‘extraordinary circumstances’ (such as natural disasters or strikes) that exempt from the obligation of compensation is too narrow. There is also a large amount of case law which has sought to determine just what is an ‘extraordinary circumstance.’
The reform proposes a non-exhaustive list of 18 extraordinary circumstances, beyond the airline’s control, that would exempt airlines from the need to pay compensation.
They include cross-border threats to health, unruly passenger incidents, health or medical emergencies, security risks, hidden manufacturing or design defect revealed, air traffic management or airport capacity restrictions, strikes at essential service providers, and unexpected absence of a crew member essential to the operation of the flight.
In addition, there are three circumstances that are not to be considered ‘extraordinary’. They are: technical problems that could have been remedied during preventive; maintenance in line with EU rules and procedures for the continuing airworthiness management of aircraft; operational decisions, late crew/check-in/boarding procedures; and unavailability of flight crew or cabin crew (unless covered by other reasons above).
Critics argue that such is the scope of the ‘extraordinary circumstances’ that the whole basis of the original legislation may well be undermined, as many claims that would otherwise be valid under current rules would no longer be possible.
The European Parliament, when they held a debate on the issue in June, indicated that the proposed rules were too tough and that some improvements to the compensation package, together with more obligations on the airlines were needed. In remains to be seen, therefore, if the rules will be ratified.
The only current certainty is that with a toughening of the rules it will result in a payday for the travel insurance industry, as passengers turn to the insurers to cover delays. That in turn is likely to lead to an increase in premiums.
Improved Rights
On a more positive note, the EU also decided that airlines must offer passengers rerouting at the earliest opportunity, including the possibility to be rerouted through flights operated by other carriers or alternative transport modes where suitable. If an airline fails to provide an appropriate rerouting within 3 hours of a disruption, passengers may arrange their own rerouting and claim reimbursement of up to 400% of the original ticket cost.
In addition, there are new rules for cancellation, for which passengers can claim compensation. Passengers who are informed of the cancellation of their flight less than 14 days before departure are entitled to compensation. In case of cancellation, the airline must provide the passengers with pre-filled forms for them to request compensation.
There are also improved rights concerning information to be provided to passengers, for those with disabilities and for refreshments during a delay.
Claims Procedure
In addition to a tougher test for compensation there is also a significant change in the procedure to make a claim.
From February 2026, passengers must first submit their claims to a designated mediator — such as France’s “Médiateur du Tourisme et du Voyage” — before pursuing legal action.
Failure to do so will render their court claims inadmissible, except in exceptional circumstances or if the mediator is unavailable for more than six months.
Passengers affected by flight disruptions should first contact the airline directly. If the response is unsatisfactory, they must then submit a complaint to the mediator within one year of the incident.
Only after mediation fails or is unresolved within six months can they take legal action.
The EU hopes that mandatory mediation will encourage faster, out-of-court settlements, reducing the number of cases clogging judicial systems.
This approach is already common in other consumer disputes and is seen as a way to balance passenger rights with the operational realities of airlines.
French authorities have emphasised that the new process should not discourage passengers from seeking compensation but rather ensure that claims are resolved more efficiently.
While consumer groups in France have warned that the new rules could make it even harder for passengers to secure compensation — especially if airlines deliberately prolong the mediation process — this outcome is not a foregone conclusion. Currently, airlines reject nearly half of all claims, including many that simply go unanswered. It may well be the involvement of a mediator could lead to a higher success rate for such claims in the future, albeit in reduced circumstances.
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