The EU agreed on a new deal on passenger rights. (Photo by Horacio Villalobos#Corbis/Getty Images)

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EU countries agree to maintain compensation paid to passengers for flight delays

Only Spain and Latvia voted against the compromise, with Austria and Finland abstaining. Spain said the compromise was not ambitious enough.

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After more than a decade of wrangling, EU member states have thrown their weight behind a compromise on updated air passenger rights that largely preserves the status quo on compensation for delayed flights, avoiding what airlines had hoped would be a significant easing of their financial burdens.

On Friday, EU ambassadors approved the deal, negotiated under the Cyprus Council presidency with the European Parliament.

Only Spain and Latvia voted against the compromise, with Austria and Finland abstaining. Spain said the compromise was not ambitious enough.

The text maintains the existing three-hour delay threshold at the final destination for passengers to claim compensation of between €250 and €600, depending on flight distance.

This comes despite earlier pushes from the European Commission and some member states to raise the threshold to four hours or cap payouts at €500, measures that would have relieved pressure on carriers hit hard by post-pandemic disruptions and rising operational costs.

The agreement, which still requires formal sign-off from MEPs in the conciliation committee by Monday and a plenary vote expected in July, is set to take effect in the second half of 2027.

European People’s Party (EPP) MEP Andrey Novakov said on Friday, “The European Parliament promised passengers that their rights would not move backwards, and we didn’t give up. Today’s decision by EU member states confirms it. The 3-hour threshold is preserved. Compensation is preserved. New rights are added beyond the status quo.”

European Conservatives and Reformist (ECR) shadow rapporteur Kosma Złotowski highlighted several “wins”, including the amendment guaranteeing families with children free seats next to each other, as well as the maintaining of the right to compensation after a three-hour flight delay and the prohibition of the cancellation of a return ticket because the passenger didn’t use the first leg.

“These are tangible benefits for millions of Europeans who fly every day. I am proud to have been able to co-create this compromise. It is undoubtedly one of the most important successes of this term of the European Parliament”, Złotowski said.

AirHelp CEO Tomasz Pawliszyn told Brussels Signal on the compromise: “Europe’s passengers can breathe a sigh of relief. We are proud that the European Parliament held the line and protected the core rights that millions of travelers rely on under EC261. The most harmful proposals were ultimately rejected, preserving the 3-hour delay threshold and the existing compensation framework.

“After thirteen years of negotiations, we would have hoped to see meaningful improvements for passengers, including an adjustment of compensation levels to reflect more than two decades of inflation. However, given the alternatives on the table, preserving the status quo was the best outcome available. Travelers deserved a reform that strengthened protections and reflected today’s travel realities.”

It reflects a hard-fought balance between consumer protection advocates and the aviation industry, which has long argued that the 2004 rules (Regulation EC 261/2004) are outdated, overly burdensome, and open to exploitation by claims management firms.

A senior EU diplomat told reporters that member states opted to keep the current framework on the “contentious question of compensation for delays.”

Airlines had sought more flexibility to remain competitive, particularly as they face higher fuel prices, staff shortages, and the impact of climate regulations.

Consumer groups, meanwhile, celebrated the retention of strong passenger protections, pointing out that many travellers still fail to claim what they are owed.

Passenger rights are often enforced by claim agencies. The European Court of Auditors found that most entitled passengers never claim on their own and that “claim agencies fill the enforcement gaps” and push airliners to meet their legal obligations.

Additional measures include greater price transparency on carry-on baggage fees.

Airlines will be required to include cabin bag charges in the basic ticket price, with optional discounts for passengers who opt out.

This addresses long-standing complaints about “drip pricing” tactics used by low-cost carriers.

The compromise also bans forcing passengers to download mobile apps for boarding passes — a practice notably introduced by Ryanair — and ensures an accompanying adult can sit near a child without extra fees.

Airlines will have to provide clearer instructions on how to submit compensation claims within 96 hours of a qualifying delay or cancellation, though MEPs failed to secure a requirement for pre-filled forms or direct links.

This falls short of more ambitious demands from Parliament but aims to boost awareness and reduce the role of intermediary claims companies that often take hefty commissions.

The reform had been in limbo since the Commission first proposed changes in 2013.

Years of deadlock between institutions, compounded by the Covid-19 pandemic and shifting priorities, delayed progress.

For millions of summer travellers, the outcome means continuity.