Iata condemns European passenger rights revision as 'missed opportunity'

Brussels has been accused of a “political trade-off” by failing to reform “deep flaws” in passenger rights regulations that will ultimately lead to higher costs for passengers.

 

Iata made the accusation, claiming that long-expected revisions to EU261 rules stopped short of “meaningful reform” after more than a decade of debate.

 

“The result is a missed opportunity with little to improve the passenger experience and nothing to shore up European competitiveness,” the airline trade body said.

 

Iata described EU261 as having a regulatory burden on the sector totalling €8 billion a year “but fails to deliver on its intention to improve performance on delays and cancellations”.

 

The association added: “This is to be expected considering that a major share of delays is related to deficiencies in Europe’s air traffic management system.”

 

Airlines supported European Commission proposals for longer time thresholds for delays before compensation obligations kick in. 

 

“This would have increased an airline’s ability to provide alternative arrangements, which passengers consistently note as their top priority when travel plans are disrupted,” Iata noted.

 

“This meaningful reform was removed in negotiations with the European Parliament, while other requirements - several unrelated to disruptions - were added with little input or consideration of their operational consequences.”

Iata’s criticism came after the Commission on Monday declared a political deal reached by the European Parliament and the Council of the EU on the revision of EU air passenger rights as a “landmark agreement”, marking the first overhaul of the rules in more than two decades.

 

However, the European Commission confirmed that the current threshold for passengers to claim compensation would remain unchanged. 

 

This means they can continue to claim compensation after a flight cancellation or a delay of three hours, amounting to €250 for flights of less than 1,500km, €400 for flights between 1,500km and 3,500km, and €600 for flights above 3,500km.

 

“This ensures continuity and predictability for both passengers and airlines,” the Commission said.

 

“The main novelty is that, in the event of a disruption, airlines must proactively inform passengers within 96 hours of their rights and the procedure for claiming compensation. To ensure a more efficient handling of passengers’ requests for compensation, procedures are streamlined.”

 

Under the revisions, which still need to be endorsed by European politicians, transparency and comparability of airfares will be strengthened, including for hand baggage charges.

 

“Passengers will be better equipped to compare offers across airlines and booking platforms, enabling more informed choices. At the same time, airlines retain the freedom to determine their own pricing structures,” the Commission pointed out.

 

The agreement also “marks an important step forward” in strengthening the rights of passengers with reduced mobility. 

 

They will receive improved support during disruptions, and their essential mobility equipment will be better protected.

 

Flight disruption caused by “extraordinary circumstances” are set out in a list, and the rules on how they are applied have been refined, “providing greater clarity and predictability for both passengers and airlines”.

 

The Commission added: “This will contribute to more consistent interpretation and application of the rules on extraordinary circumstances across member states.”

 

Tomasz Pawliszyn, president of the Association of Passenger Rights Advocates (APRA), said: “Europe came dangerously close to the most severe rollback in the history of European consumer rights. Parliament deserves credit for preventing that from happening.

 

“We are relieved that the European Parliament held the line. Given the turn these negotiations took, especially in the final weeks, preserving the status quo had become the best outcome available.”

 

But Iata condemned “deep flaws” in the agreement, claiming the only substantial changes regarding disruptions were:

 

• The addition of a “non-exhaustive” list of extraordinary circumstances, “albeit one which inexplicably fails to reinforce the industry’s safety-first approach”, and
   
• A requirement for airports to have contingency plans for accommodation in the event of mass disruptions, “which is a first small step on the road to shared accountability across the aviation ecosystem”

Iata director general Willie Walsh said: “After 13 years of discussion, the opportunity to improve Europe’s competitiveness and the passenger experience by addressing the flaws of EU261 was lost. 

 

“The result will not reduce delays, but considering the whole package of changes, it will create operational challenges and add costs which will ultimately be borne by passengers.

 

“So, it’s a reform in name only that does nothing to help disrupted passengers. Those responsible for this political trade-off must be held accountable with transparent data to monitor its costs and impacts.”

He added: “Where do we go from here? First, we must work with the Council and Parliament to ensure that the enforcement package does not make an already bad situation worse with additional regulatory burdens that the sector can ill afford. The aim should be practical, effective, and consistent implementation.

 

“And second, Europe’s imminent Aviation Strategy must address air traffic management deficiencies which are the root cause of many delays.”

 

Iata’s attack came after European commissioner for sustainable transport and tourism Apostolos Tzitzikostas described the agreement as a “major step forward” for European passengers and for Europe’s aviation sector.

 

“It delivers stronger and clearer passenger rights in practice, improves transparency, and brings legal certainty for airlines and authorities,” he said.

 

“We have found the right balance - preserving Europe’s world-leading passenger protection while creating a fair, predictable and workable framework for the aviation industry.

 

“This agreement demonstrates that Europe can deliver practical solutions that benefit citizens and businesses alike.”

 

But Ryanair group chief executive Michael O’Leary described the new regulations as more “bureaucratic bunkum”. 

 

“Instead of encouraging EU airlines to advertise our lowest fares, which exclude second cabin bags, which is what over fifty per cent of our customers choose, these new rubbish regulations require airlines to falsely advertise higher air fares, making EU airlines even less competitive," he said.

 

“When Europe needs economic growth to improve its defence spending, the best our leaders can manage is new regulations about airline cabin bags, which deny airlines the right to advertise our lowest available air fares.”