EU's flight compensation reform sparks backlash among consumers

Wednesday 28 May 2025 - 17:10

By: Dakir Madiha

EU's flight compensation reform sparks backlash among consumers

The European Union is contemplating a controversial shift in air travel regulations that would permit airlines to impose longer delays without compensating passengers, inciting outrage among consumer advocacy groups and dividing member states.

Representatives from the bloc's 27 nations are scheduled to convene in Brussels to deliberate this proposal, which proponents argue could reduce the frequency of flight cancellations.

Currently, European airlines are obligated to compensate travelers up to €600 ($682) for delays exceeding three hours or for cancellations made less than 14 days prior to departure. These regulations, established in 2004, are seen by supporters as a triumph of consumer rights advocacy within the EU.

However, airlines contend that these compensation requirements create significant financial burdens, often leading them to cancel flights outright rather than risk incurring the costs associated with delays. "Extending the so-called delay thresholds will give airlines more time to move planes and crews across Europe to save flight schedules," stated Airlines for Europe (A4E), an influential industry group.

Poland, currently holding the EU's rotating presidency, has revived discussions on reforming these regulations, which have stagnated since a 2013 proposal failed to gain traction. Initial discussions suggested increasing the maximum allowable delay without penalties to five hours, according to sources familiar with the matter.

Yet, this proposal has met resistance from several member states, including Germany, prompting ongoing negotiations aimed at reaching a compromise. "Long flight delays are a real nuisance. They ruin the start of well-deserved holidays. They disrupt important plans. They cost valuable lifetime," remarked Stefanie Hubig, Germany's consumer rights minister. She emphasized that Berlin would not support any changes that appeared to align solely with the interests of airlines, especially ahead of the holiday season.

Increasing the delay threshold could potentially preserve nearly 50 percent of flights currently subject to cancellation, according to A4E, which represents major carriers such as Air France-KLM and Lufthansa. However, it would also strip approximately 75 percent of passengers of their right to compensation, a point underscored by the European Consumer Organisation (BEUC) in a joint statement with other advocacy groups. "This is an unacceptable step back from the current level of protection," they asserted.

Delays and cancellations are projected to cost airlines up to €8.1 billion this year, as estimated by the European Commission. Despite this, organizations that assist passengers in claiming compensation highlight that only a small fraction of eligible travelers actually file claims.

"For European customers, this is a disastrous change," remarked Tomasz Pawliszyn, the head of Airhelp, a company that facilitates compensation claims. He warned that adopting these new thresholds could lead to confusion, particularly as similar regulations in other regions, such as Canada, Turkey, and Britain, may create discrepancies in delay allowances for European carriers compared to their non-European counterparts.

The proposed changes are part of a larger reform initiative that includes measures favoring passengers, such as prohibiting airlines from charging fees for standard-sized hand luggage. Nonetheless, some European lawmakers have expressed their discontent, criticizing the Polish presidency of the European Council for attempting to expedite the process in a way that limits parliamentary input.

"The first word that comes to my mind about the council's behavior is blackmail," stated Andrey Novakov, a lawmaker with the center-right European People's Party (EPP). He emphasized the need for thorough deliberation among parliament members, stating that effective solutions for both passengers and airlines require adequate time for consideration.