EU approves major overhaul of airline passenger rights

The European Commission welcomed a political agreement reached by the European Parliament and the Council to revise the EU261 regulation, the first update in more than two decades. The revised rules keep compensation amounts unchanged (250 €, 400 €, 600 € depending on distance and delay) but introduce new airline obligations: a link to a claim form must be sent to affected passengers within 96 hours of the scheduled arrival, airlines must explain any extraordinary circumstances when refusing compensation, and they must pay or justify a refusal within 30 days. In cases of re‑routing, an alternative flight must be offered within three hours.

The reform also strengthens transparency on fare and hand‑luggage pricing, bans no‑show charges for return flights, enhances rights for passengers with reduced mobility or disabilities, and allows airlines to display a “EU passenger‑rights” label. After formal adoption by the Parliament and Council, the regulation will be published in the Official Journal and come into force 12 months later, with full implementation expected in 2027. Industry groups warned the new duties could raise the cost of the compensation scheme to between €8 billion and €15 billion annually, but the changes aim to make passenger rights more effective and consistent across all EU member states.