EU adopts sweeping overhaul of airline passenger compensation rules

The European Union has approved a major revision of its airline passenger‑rights framework, the first comprehensive reform since 2004. The new regulation strengthens compensation for flight delays, cancellations and baggage issues and requires airlines to display baggage fees and other charges up front. Compensation amounts remain €250 for flights up to 1,500 km, €400 for up to 3,500 km and €600 for longer routes, and the same tiers apply to cancellations made less than 14 days before departure. Extraordinary circumstances such as weather, natural disasters, passenger disturbances or strikes are excluded from compensation, with a non‑exhaustive list to be provided by the EU.

The rules apply to all flights within the EU and to flights departing from EU airports to non‑European destinations, but only when the carrier is EU‑based if the destination alone is in the EU. Full implementation is expected by mid‑2027. The regulation also introduces free seat reservations for children under 14, pregnant travellers and those with reduced mobility, and obliges airlines to correct name‑typo errors and re‑print boarding passes at no cost.

In parallel, the Montreal Convention sets uniform liability limits for airlines worldwide: roughly US$2,070 per passenger for lost, damaged or delayed baggage and US$8,580 for passenger‑delay damages, with claim deadlines of seven days for damaged baggage and 21 days for delayed baggage.