Air passengers in Europe enjoy some of the best consumer protections in the world. But the European Union is contemplating watering down these passenger-friendly measures, which could leave travellers out of pocket.

The current regulation, known as EU261, has been in place since 2005, providing passengers with compensation and support in the event their trip doesn’t go to plan. A revision to these rules has been debated since 2013, but has resurfaced this week as Brussels once again comes under pressure from airlines and lobbying groups.

It would mean the amount of time your flight needs to be delayed before compensation is paid could change.

Currently, passengers must arrive at their destination at least three hours late in order for EU261 to apply. A new proposal led by Poland, which currently holds the presidency of the Council of the European Union, could see this threshold raised to at least five hours.

“These changes would be hugely detrimental for consumers,” says Coby Benson, flight delay compensation solicitor at Bott & Co, noting that the current three-hour threshold incentivises airlines to run a punctual operation. “If the threshold was raised to five hours, airlines would face no penalty for those lengthy delays and therefore passenger inconvenience will increase.”

What is EU261 and how does it protect passengers?

Regulation (EC) No 261/2004, commonly referred to as EU261, is a European Union regulation that establishes the rights of air passengers in cases of flight delays, cancellations, and denied boarding. It ensures passengers are entitled to compensation, assistance, and reimbursement when their travel plans go wrong.

EU261 applies to any flight departing from an EU airport, regardless of the airline’s nationality, and flights arriving at EU airports if they’re operated by an EU airline. It does not cover flights heading to Europe on non-EU airlines, or non-European flights that have a layover in Europe.

The regulation covers all member states plus Iceland, Norway and Switzerland. The UK has adopted the same criteria for compensation, with the law referred to as UK261.

Currently, passengers are entitled to compensation if they are delayed for more than three hours, if the flight is cancelled within 14 days of departure, and if they were denied boarding because the flight was overbooked.

Compensation is not payable for ‘extraordinary circumstances,’ which include extreme weather, air traffic control restrictions, strikes not involving the airline’s staff, and political instability.

The amount of compensation you get will depend on the length of the delay and the distance of your flight. The maximum payable for any one claim is €600, which would involve a flight of more than 3,500 km and a delay of four hours plus.

“The importance of reliable and safe travel for consumers has been highlighted by the flight chaos of recent summers and the coronavirus pandemic,” Karolina Wojtal, head of the European Consumer Centre (ECC) in Germany, told Euronews Travel. “Far too often, passengers are faced with cancelled or delayed flights.”

According to data from flight compensation company Skycop, almost 2 per cent of departures from EU airports were either significantly delayed or cancelled in 2024. Between June and August, the busiest travel months, more than 60,000 flights were disrupted to the extent they were covered by EU261. Skycop estimates the total bill at €2 billion in passenger compensation.

What are the changes to flight compensation currently being considered?

The changes being debated now are the same ones proposed in 2013. These include introducing a structured compensation scheme for delays, moving from the current three-hour threshold to five hours for short-haul, nine hours for medium-haul and as long as 12 hours for the longest flights.

“Such a revision would significantly weaken passenger rights by raising the compensation thresholds,” says Reinhold Schranz, head of the European Consumer Centre in Austria. “This would lead to a situation where nearly 85 per cent of affected passengers would no longer be entitled to compensation—since most recorded delays fall between 2 and 4 hours.”

Airlines4Europe, an airline association representing 70 per cent of European air traffic, argues that extending the flight delay to five hours would actually result in more passengers getting to their destinations. They say it “would act as a strong incentive for airlines to solve any possible delays before reaching the threshold” and avoid a cancellation of the flight.

However, Schranz warns that passengers could face increased delays if the protections are weakened. “As compensation for cancellations remains due regardless of delay duration, airlines might be incentivised to delay flights rather than cancel them to avoid paying compensation,” he added.

Should airlines be paying passengers more compensation?

Despite the real term value of payouts changing due to inflation, the amounts paid under EU261 haven’t changed in two decades.

AirAdvisor, a flight compensation company, says reforms are needed to EU261 to maintain its value to consumers.

“EU261 compensation has been stagnant for two decades, and inflation has eroded its value,” says Anton Radchenko, CEO of AirAdvisor. “If EU regulators don’t adjust these rates, they will fail to incentivise airlines or provide meaningful compensation to passengers. Right now, passengers may not even bother claiming compensation for amounts as low as €250.”

Many airlines are completely opposed to EU261, particularly the low-cost and short-haul operators. With passengers paying as little as €20 for a flight on Ryanair, the airline can be left severely out of pocket if dozens of people claim compensation for a delay.

“We think the amounts are disproportionate,” Philip Meeson, CEO of Jet2, told the Independent. “We think it would be a great idea to review the rules and make them proportionate.”

The International Air Transport Association (IATA) has long demanded a review of the rules. “They are a mess,” says director general Willie Walsh. “They cost airlines €5 billion a year and do nothing to drive improvements in some of the worst-performing corners of the aviation system or improve the flying experience.”

For the ECC in Germany, the focus is on maintaining existing standards rather than increasing the amounts payable. Head Karolina Wotjal points out that time thresholds are crucial to triggering payment, and that if these were changed, even higher compensation amounts wouldn’t help the consumer as fewer people would be able to claim.

“Consumers see the existence of strong passenger rights as a success for the EU,” says Wotjal. “Reducing their rights at this political moment is not a good signal at all.”

When will passenger compensation for flight delays change?

With new proposals floated and in discussion, there is now a long road ahead to get any changes cemented into legislation. Conversations are likely to continue over the coming months, with outcomes going through the European Parliament and the Council, both of which would have to sign off on the final text.

When the UK ‘Brexited’ the EU, it had the option to stop following the directives of the Union. However, it adopted EU261 into UK law, and passengers from the UK are allowed the same protections for flights as their European counterparts.

Should the rule change in the EU, it wouldn’t naturally alter in the UK. However, as Benson notes, “it remains to be seen whether the UK government would look to follow suit and voluntarily seek to bring our law in line with Europe.”

For now, the three-hour rule remains in place, so travellers who are delayed can still seek compensation. But the outcome of discussions in Brussels could have far-reaching impacts on passenger rights in Europe.