EU adopts compromise reform of airline passenger compensation rules

The European Parliament and Council reached a political agreement on 12‑13 June 2026 to revise the EU261 air passenger rights regulation. The reform raises the delay thresholds for compensation to four hours on short‑haul flights and six hours on long‑haul routes, slightly reduces the compensation amounts and expands the definition of “extraordinary circumstances” to include severe air‑traffic‑control staffing shortages, extreme weather, cyber‑security incidents and airport‑infrastructure failures. It also gives airlines more flexibility on re‑routing, imposes stricter reporting duties and mandates digital tracking of assistance such as meals and hotels.

Critics, including the German airline association BARIG, say the changes diminish passenger protection. Spain and Latvia voted against the text, objecting to the continued allowance for airlines to charge for cabin‑hand luggage despite recent fines of €179 million for the practice. The compensation rates (€250, €400 and €600) remain unchanged, but new obligations require airlines to inform passengers electronically within 96 hours of a delay and to respond to claims within 14 days, while banning “no‑show” ticket cancellations and certain surcharges for children and dependents. The airline industry group ALA calls the reform modest and warns it may raise operating costs.